Texas Utility Regulators Sue to Keep Data Center Location Records Private
Texas’ Public Utility Commission is asking a Travis County court to prevent the release of certain information about the locations of data centers and virtual-currency mining facilities, arguing that the information could expose vulnerabilities in critical infrastructure.
The lawsuit, filed October 5, 2026, pits the state utility regulator against the office of Attorney General Ken Paxton over how Texas’ public-records law and Homeland Security Act apply to information collected from the state’s rapidly growing data center industry. (texastribune.org)
Why This Matters to Texans
Texas has experienced rapid growth in large computing facilities, including data centers supporting artificial intelligence and other high-demand technologies.
These facilities can require substantial amounts of electricity and, depending on their cooling systems, significant quantities of water. State officials have been seeking more information about those demands as they plan for future electricity and water needs. (texastribune.org)
The dispute highlights a growing policy question: How much information about major infrastructure projects should be publicly available, and when can location and operational information be withheld for security reasons?
What Information Is at the Center of the Lawsuit?
The PUC is not asking the court to declare its entire data center survey confidential.
Instead, the agency is specifically seeking protection for two geographic fields:
- The county where a data center or virtual-currency-mining facility is located.
- The regional water-planning area where the facility operates.
The PUC argues that these details become more sensitive when combined with other information collected through its survey, including electricity demand, actual electricity consumption, projected peak demand, water consumption, water sources, cooling technology and information about the infrastructure serving each facility. (texastribune.org)
According to the commission, linking those operational details to a specific location could reveal vulnerabilities that could potentially be exploited through physical or cyberattacks.
How the Dispute Started
Texas lawmakers directed the PUC in 2025 to collect information about electricity and water use at data centers and virtual-currency-mining operations.
The commission sent its survey to 377 facilities and requested information about facility locations, power consumption, projected demand, water use, cooling systems and connections to the electric grid. (texastribune.org)
The records became the subject of public-information requests from a McLennan County resident and four journalists, including a Texas Tribune reporter.
The PUC initially sought to withhold the requested records and asked the attorney general’s Open Records Division to determine whether the information was protected under the Texas Homeland Security Act.
The attorney general’s office issued rulings concluding that the PUC had not sufficiently demonstrated that the disputed information qualified for the claimed exemption.
The PUC is now asking a Travis County judge to overturn those rulings. (texastribune.org)
Why Water and Electricity Data Matter
The dispute comes as Texas officials are paying closer attention to the infrastructure demands of large computing facilities.
Texas’ regional water-planning system uses information about projected water demand to help determine how communities and industries can meet future needs.
The location of major industrial water users can therefore be relevant to regional planning, particularly as the number of large data centers grows.
At the same time, the PUC argues that combining location information with detailed electricity and water-use data could reveal information about critical infrastructure that should not be publicly disclosed. (texastribune.org)
Broader State Oversight of Data Centers
The lawsuit comes amid increased state scrutiny of data center water and electricity use.
In September, Gov. Greg Abbott directed the Texas Water Development Board to enforce existing water-use reporting requirements for major users, including data centers. He also directed the PUC and ERCOT to conduct additional audits of data centers seeking to connect to the state’s electric grid, including reviews of water consumption, water sources and water-efficiency measures. (gov.texas.gov)
Attorney General Paxton’s office also announced an investigation into data center developments that had not responded to required water-use surveys. The initial investigation covers facilities in 18 Texas counties. (oag.state.tx.us)
These actions reflect a broader effort by state officials to understand how the industry’s expansion could affect Texas’ water and electric infrastructure.
What Happens Next?
The Travis County lawsuit remains unresolved.
A court decision will determine whether the PUC can withhold the disputed geographic information under the Texas Homeland Security Act or whether the records must be released under the state’s public-information laws.
The case does not represent a final determination that the records are either security-sensitive or required to be public. Those questions remain before the court. (texastribune.org)
Key Takeaway
Texas is facing a growing policy challenge as data centers expand and demand more electricity and, in some cases, water.
The PUC’s lawsuit illustrates the tension between public transparency and infrastructure security. The commission argues that even basic location information can become sensitive when combined with detailed information about power, water and cooling systems.
For communities, developers and property owners, the outcome could provide additional guidance on what information about large data center projects can be obtained through public-records requests.
For now, however, no final court ruling has determined whether the disputed information must remain confidential or be released.