Texas Public Utility Commission sues to block release of data center location records

The Public Utility Commission of Texas filed a lawsuit on October 5, 2026, to block the release of county and water-planning location data for data centers and cryptocurrency mines, warning that publicizing these details could aid terrorists. Challenging rulings by Attorney General Ken Paxton's office, the commission argues that combining location data with resource consumption figures exposes critical infrastructure vulnerabilities. This legal battle unfolds as Governor Greg Abbott tightens regulatory oversight on the rapidly expanding, resource-intensive industry.

The lawsuit over public records

• ▪The Public Utility Commission of Texas filed a lawsuit on October 5, 2026, in a Travis County court to block the release of geographic records for data centers and virtual currency mines.
• ▪The Public Utility Commission of Texas lawsuit challenges two rulings by Texas Attorney General Ken Paxton's office stating that the requested geographic records must be released under public-records law.
• ▪The legal dispute began after a McLennan County resident and four journalists, including a Texas Tribune reporter, filed open records requests for the Public Utility Commission of Texas survey responses.

Security arguments over location data

• ▪The Public Utility Commission of Texas argues that a facility's county and regional water planning area constitute privileged information that should be exempt from disclosure under the Texas Homeland Security Act.
• ▪The Texas Attorney General's office ruled that the Public Utility Commission of Texas failed to establish that the disputed geographic records identify technical vulnerabilities covered by the Texas Homeland Security Act.
• ▪The Public Utility Commission of Texas is not seeking to keep its entire industry survey confidential, but specifically objects to releasing the two geographic location fields.
• ▪The Public Utility Commission of Texas argues that combining location data with electricity and water usage details could reveal vulnerabilities, aiding terrorists or foreign adversaries in physical or cyberattacks.

Creation of the resource survey

• ▪The Public Utility Commission of Texas developed its voluntary resource survey in cooperation with the Texas Water Development Board to analyze the relationship between electricity demand and water consumption.
• ▪In 2025, Texas lawmakers directed the Public Utility Commission of Texas to collect water and energy consumption data from data centers and virtual currency mines to assist in future resource planning.
• ▪Regional water-planning groups in Texas rely on geographic locations of major industrial water users to project future water demand and identify infrastructure strategies.

Low response rates to surveys

• ▪A separate, mandatory water-use survey conducted by the Texas Water Development Board has also yielded low response rates from Texas data centers.
• ▪The Public Utility Commission of Texas voluntary survey received responses from 28 companies representing 92 facilities by June 2026, and 77 data centers and 13 virtual currency mines of 377 surveyed after reopening in July 2026.

Governor Abbott's regulatory actions

• ▪Texas Governor Greg Abbott directed the Texas Water Development Board to take enforcement action and apply penalties against data centers that fail to comply with mandatory water use reporting.
• ▪Texas Governor Greg Abbott, amid his reelection campaign, has increasingly backed tighter regulatory restrictions on data centers despite previously supporting Texas as an artificial intelligence development hub.
• ▪Texas Governor Greg Abbott ordered state agencies to conduct additional reviews of data centers seeking connection to the state's electric grid, including evaluations of water and electricity use.

Previous disclosure disputes

• ▪The Public Utility Commission of Texas previously spent over $56,000 in taxpayer funds on outside lawyers to withhold records regarding a power plant loan program and cryptocurrency mines.
• ▪In 2025, the Houston Chronicle obtained invoices through a public records request showing the Public Utility Commission of Texas spent taxpayer funds to hire outside lawyers.

Iranian attacks on foreign data centers

• ▪In April 2026, Iran's Islamic Revolutionary Guard Corps publicly claimed responsibility for targeting an Amazon Web Services cloud-computing facility in Bahrain.
• ▪In March 2026, Iranian strikes damaged Amazon Web Services data centers and infrastructure in the United Arab Emirates and Bahrain, causing service disruptions and power connectivity issues.

Debatable claims

• ▪Regulating data center resource consumption is more important than promoting technological growth
• ▪Texas should exempt data center geographic locations from public records disclosures