~ In a recent announcement, Governor Greg Abbott revealed that several data center companies have agreed to comply with the standards and guidelines he established for data centers in Texas. These guidelines, which were put in place earlier this summer, aim to ensure that data center development does not come at the expense of Texas families or communities.

Governor Abbott's clear and commonsense standards have been universally implemented by data centers across the state. However, one data center that was unable to comply with these guidelines has chosen to end 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."

Under these guidelines, the Public Utilities Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) are responsible for ensuring that data centers meet certain requirements. These include 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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Additionally, the PUCT and ERCOT will examine each data center project to ensure they are paying their own way by disclosing all taxpayer-funded incentives and grants tied to the project. They must also provide their own power through on-site generation or other measures to reduce reliance on the ERCOT grid. Furthermore, measures must be taken to protect Texas' water resources and minimize impacts on neighboring communities.

Governor Abbott emphasized the importance of transparency in this process. "The PUCT and ERCOT cannot make decisions to guarantee grid stability and reliability based on substantially incomplete information," he stated.

Any data center company that fails to comply with ERCOT's audit process will not receive approval for their project. Since these directives were issued by Governor Abbott, several data centers have either announced their full compliance or have chosen to end their project.

These standards and guidelines serve as guardrails to protect Texas communities and ensure responsible data center development. With the cooperation of these companies, Governor Abbott's vision for a sustainable and prosperous Texas is becoming a reality.

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