Smith County is among several counties with data center developments currently under investigation by the Texas Attorney General’s office, as announced by Attorney General Ken Paxton on Thursday, September 24, 2026. The state investigation centers on allegations that these developments have not provided responses to the Texas Water Development Board’s (TWDB) water use survey, a requirement under Texas law.
Attorney General Paxton stated that his office is investigating "hundreds of data center developments to ensure that they are transparent about their water usage and fully compliant with the law." He emphasized the responsibility to "steward our state’s land well" and expressed concern that companies might be disregarding legal obligations to Texas and its citizens. Paxton noted that the state cannot afford to "sacrifice our resources, water, or energy supply" and affirmed his commitment to fighting for communities across the state.
The investigation extends to data centers in counties across Texas, including Harris, Montgomery, Travis, Dallas, Tarrant, Bexar, Tom Green, Potter, Randall, Lubbock, Midland, Ector, Wichita, Victoria, Brazos, Nueces, and El Paso. Paxton’s office indicated that centers in these counties have not complied with water usage reporting requirements. While Smith County is part of this statewide probe, the Attorney General’s office has not confirmed which specific data center(s) or developments within the county are under investigation.
Texas law mandates that the state water board conduct surveys of entities that use groundwater and surface water for purposes such as municipal, industrial, power generation, or mining. Paxton’s office is demanding that all data centers statewide meet this requirement by submitting a survey response in full compliance with the law. This initiative is part of an ongoing investigation into all data center developments in Texas, with the Attorney General's office stating a commitment to protecting Texas communities and water resources. The Texas Tribune reports that there are at least 596 operating and planned data centers across the state, with that number continuing to grow.
In Smith County, the Tyler Vault Data Center is identified as the only operating public data center, according to information from Data Center Map, Cleanview, the U.S. Census Bureau, and reporting by The Texas Tribune. This facility, located at 110 N. College Avenue inside the Plaza Tower, offers “practical data center services that keep organizations connected, protected, and operating,” according to its website. Another data center development was proposed by Barrio Energy in partnership with Vulcan Core on Erwin Street in Tyler, intended as a Bitcoin mining facility, but efforts to proceed with that project have failed.
Tyler Vault Data Center provided a statement clarifying its operations, distinguishing public commercial data centers from private ones. The company describes itself as a family-owned East Texas business that has operated in downtown Tyler since 2009. It provides low-cost data center space and hosting to local businesses, as well as internet backbone connectivity to other organizations. Tyler Vault specified that it is not a newly constructed hyperscale artificial-intelligence facility or a cryptocurrency mining operation, nor does it consume megawatts of power.
Furthermore, Tyler Vault stated that its facility does not use water for cooling. The company explained that its cooling system was designed without cooling towers or evaporative cooling, which it considers unnecessarily wasteful of water and energy, especially given East Texas's high humidity. Instead, Tyler Vault employs conventional mechanical cooling, similar to a home air conditioner, and integrates outside-air economization when environmental conditions allow. This method uses outside air to reduce the amount of mechanical cooling needed. The company also noted an additional efficiency measure: beneficial use of the heat produced by its equipment to help reduce heating requirements elsewhere in its building, thereby making productive use of energy that might otherwise be wasted. Tyler Vault expressed support for accurate water-use reporting but stated it has no record of receiving a water use survey from the TWDB.
Attorney General Paxton’s office plans to ensure that all data center developments in Texas provide up-to-date and accurate information regarding their water usage as the investigation proceeds.
