HOOD COUNTY EXPRESS | THE DATA CENTER DOCKET
💧 AG's Office Demands Overdue Water-Use Survey From 'Generate Capital-Wolf Hollow'
📅 October 29th, 2026AD
Following the data center fight in Hood County — permits, water, power and who decides.
GRANBURY — Texas Attorney General Ken Paxton's office has demanded that "GENERATE CAPITAL-WOLF HOLLOW" complete a state water-use survey that the office says was due March 1, according to a copy of the Oct. 13 letter obtained by Hood County Express.
The letter, from the office's Environmental Protection Division, is addressed to Generate Capital-Wolf Hollow at 1909 Mitchell Bend Highway in Granbury, near the Wolf Hollow power plants. It is signed by Assistant Attorney General Aidan Read.
The document is a demand letter. Nothing in it says a lawsuit or criminal charge has been filed, and no court has made any finding.
WHAT THE LETTER SAYS
The letter says the Texas Water Development Board sent Generate Capital-Wolf Hollow a Water Use Survey for the facility at 1909 Mitchell Bend Highway, and that a response was required by March 1, 2026.
"As of the date of this letter, GENERATE CAPITAL-WOLF HOLLOW has not submitted the survey response as required by law," it says.
The office demands that the recipient:
🔹 fully and accurately complete and submit the survey within seven days of receiving the letter, and
🔹 confirm compliance to the office in writing within seven business days of receiving it.
"If you fail to comply and continue to violate Texas law, the State of Texas may pursue all available legal actions against you without further notice, including civil or criminal prosecution, as well as the recovery of attorneys' fees and court costs," the letter says.
The letter was sent by first-class and certified mail. It is not known when it was received or whether a survey response has been filed since.
ABOUT GENERATE CAPITAL
Generate Capital is the company whose subsidiaries sold the Granbury bitcoin mining data center beside the Wolf Hollow plants to Marathon Digital Holdings, now MARA, according to MARA's announcements. MARA said the sale closed Jan. 16, 2024, and its Granbury website says MARA began operating the site in April 2024.
Hood County Appraisal District records list 1909 Mitchell Bend Highway as a 7.56-acre lot owned by Wolf Hollow II Power LLC, with a 2,000-square-foot building and a 2,750-square-foot shop built in 2022. MARA lists its Granbury address as 2001 Mitchell Bend Highway with the Granbury Chamber of Commerce. The district's records list MARA's mining equipment at 1801 Mitchell Bend Highway, on a 182-acre parcel also owned by Wolf Hollow II Power LLC.
Neither 1909 nor 2001 Mitchell Bend is a power plant address. Constellation's Wolf Hollow II plant is at 8787 Wolf Hollow Court, and appraisal records list the Wolf Hollow I plant at 9201 Wolf Hollow Court.
HCE could not confirm who now receives mail at 1909 Mitchell Bend Highway, or whether the survey and the letter reached the site's current operator.
WHAT THE LAW SAYS
The water board surveys entities that use groundwater or surface water for municipal, industrial, power generation or mining purposes. Recipients must return the survey within 60 days, under board rules.
Under Texas Water Code Section 16.012(m), failing to complete and return the survey is a Class C misdemeanor. It also makes the recipient ineligible for water board funding and for certain state water-rights permits.
Gov. Greg Abbott directed the water board Sept. 14 to penalize data centers that do not report their water use, The Texas Tribune reported. The board releases survey compliance records only through public information requests, the Tribune reported.
THE BIGGER PICTURE
On Oct. 15, the attorney general's office said it had sent letters to 156 data center developments in 32 counties, including Hood County, requiring up-to-date and accurate water-use information. The announcement did not name recipients, and KBTX reported the office did not provide copies of the letters when asked.
HCE could not confirm whether the Generate Capital-Wolf Hollow letter is one of the 156.
On Oct. 16, HCE reported that Hood County was on the office's list. This is the first letter to a specific Hood County site that HCE has seen.
WHAT'S NEXT
HCE has not requested comment from Generate Capital, MARA, Constellation, the attorney general's office or the Texas Water Development Board for this story. This story will be updated if any of them respond.
Hood County Express — Est'd 1/26 🚂
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