~ In a recent announcement, Governor Greg Abbott revealed that EdgeConneX and Stream Data Centers have agreed to comply with the standards and guidelines he established for data centers. These measures were put in place to ensure the protection of Texas' electric grid, conservation of water resources, respect for local neighborhoods, and fair financial practices.

Governor Abbott stated, "I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way." He emphasized that data centers should not pass on costs 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 implement statewide standards for data center development. These standards include:

- Data centers must pay for their own electric infrastructure instead of shifting costs onto Texas families and small businesses.

- They must reuse their own water.

- They should reduce the cost of electricity for Texans.

- Data center development should not disrupt residential neighborhoods in order to preserve Texas' quality of life.

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- Companies must pay their own way and eliminate reliance on outdated taxpayer-funded incentives.

Additionally, the PUCT and ERCOT will thoroughly examine each data center project to ensure compliance with these standards. This includes disclosing all taxpayer-funded incentives, grants, abatements, and other public financial assistance tied to the project. Companies must also provide details on projected electricity demand and plans for on-site generation or other measures to reduce reliance on the ERCOT grid. Measures to protect water resources and neighboring communities must also be outlined.

Governor Abbott stressed 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 face consequences such as having their approval denied. Since the implementation of these standards, data centers across the state have either announced their full compliance or have ended their data center projects. These measures provide necessary guardrails to protect Texas communities.

In conclusion, Governor Abbott's directives for data center development aim to ensure responsible and sustainable practices that benefit both the state and its residents. With the cooperation of companies like EdgeConneX and Stream Data Centers, Texas can continue to thrive while also protecting its resources and communities.

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