~ In a recent press release, Governor Greg Abbott announced that three major data center companies, Galaxy, Compass Datacenters, and Montera Infrastructure, have agreed to comply with the standards and guidelines he established for data centers in Texas. This move comes as a result of the Governor's efforts to ensure that data center development does not come at the expense of Texas families or communities.

According to Governor Abbott, these guidelines and guardrails are proving to be effective as they are being universally implemented by data centers across the state. In fact, one data center that was unable to comply with the standards chose 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."

Earlier this summer, Governor Abbott directed the Public Utilities Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to establish clear and commonsense statewide standards for data center development. These standards require data centers to pay for their own electric infrastructure instead of shifting costs onto Texas families and small businesses. They also must reuse their own water and reduce electricity costs for Texans.

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Furthermore, these guidelines prohibit data centers from disrupting residential neighborhoods in order to preserve the quality of life in Texas. They also aim to eliminate reliance on outdated taxpayer-funded incentives by requiring data centers to pay their own way.

In addition, the PUCT and ERCOT will thoroughly examine each data center project before it can move forward. This includes disclosing all taxpayer-funded incentives and grants tied to the project, providing their own power through on-site generation or other measures, protecting water resources by identifying sources and outlining water-efficient cooling technologies, as well as addressing potential impacts on neighboring communities.

Governor Abbott emphasized that transparency is crucial in this process and any company that fails to comply with the audit process will not receive approval from ERCOT.

"Any data center company that fails to comply with ERCOT's audit process will be subject to having its approval denied," Governor Abbott stated.

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 are proving to be effective in protecting Texas communities and ensuring responsible development of data centers.

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