~ In a recent announcement, Governor Greg Abbott revealed that three major companies, Amazon, Lancium, and Cipher Digital, have agreed to comply with the standards and guidelines he established for data centers. This move comes as a result of the Governor's efforts to ensure that data center development in Texas does not come at the expense of its residents.

According to Governor Abbott, these guidelines and guardrails have been successful in their implementation across the state. In fact, one data center that was unable to meet these standards chose to end its operations before even beginning construction.

"I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way," said Governor Abbott. "They must not pass costs on to Texas families or interfere with their quality of life."

Earlier this summer, Governor Abbott directed the Public Utilities Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to establish statewide standards for data center development. These standards include measures such as paying for their own electric infrastructure instead of shifting costs onto Texas families and small businesses, reusing their own water, reducing electricity costs for Texans, and avoiding disruptions in residential neighborhoods.

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In addition to these guidelines, the PUCT and ERCOT will also examine each data center project individually. They will ensure that companies disclose all taxpayer-funded incentives tied to the project and provide their own power through on-site generation or other measures. The companies must also identify water sources and usage plans while implementing water-efficient cooling technologies. Measures must also be taken to reduce impacts on neighboring communities.

Governor Abbott emphasized the importance of transparency in this process by requiring companies to disclose project ownership and controlling interests. The PUCT and ERCOT will review this information before allowing any data center projects to move forward.

"The PUCT and ERCOT cannot make decisions to guarantee grid stability and reliability based on substantially incomplete information," stated Governor Abbott.

Any data center company that fails to comply with the audit process will not receive approval for their project. Since the implementation of these standards, data centers across the state have either announced their full compliance or have chosen to end their projects. Governor Abbott's guidelines and guardrails have proven to be effective in protecting Texas communities.

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