~ In a recent announcement, Governor Greg Abbott revealed that major tech companies Microsoft, Hut 8, and Equinix 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.

Governor Abbott's guidelines and guardrails have been widely praised for their effectiveness in protecting the state's resources and preserving its quality of life. In fact, one data center that was unable to meet these 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 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 disruption to residential neighborhoods.

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In addition, the PUCT and ERCOT will thoroughly examine each data center project to ensure compliance with these standards. 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 implementing efficient cooling technologies, minimizing impacts on neighboring communities through noise mitigation and traffic improvements, and maintaining full transparency about project ownership.

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

Any data center company that fails to comply with ERCOT's audit process will face denial of approval. Since these directives were issued by Governor Abbott, many data centers across the state have either announced their full compliance or have chosen to end their projects altogether. These standards serve as guardrails to protect Texas communities and ensure responsible development.

Governor Abbott's efforts have been widely praised by both industry leaders and residents alike, as they strike a balance between economic growth and preserving the state's resources. With these measures in place, Texas can continue to attract data center development while also safeguarding the well-being of its citizens.

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