~ In a recent announcement, Governor Greg Abbott revealed that three major data center companies, Stack Infrastructure, Anthropic, and Nightpeak Energy, 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.

Governor Abbott's guidelines and guardrails have been deemed successful as they have been universally adopted by data centers across the state. In fact, one data center that was unable to comply with 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. He emphasized that these companies must not pass costs onto 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 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reducing electricity costs for Texans, avoiding disruption of residential neighborhoods, and eliminating reliance on outdated taxpayer-funded incentives.

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Furthermore, the PUCT and ERCOT will thoroughly examine each data center project to ensure compliance with these standards. This includes disclosing all taxpayer-funded incentives tied to the project, providing their own power through on-site generation or other measures to reduce reliance on the ERCOT grid, protecting Texas water resources by identifying sources and outlining water-efficient cooling technologies, minimizing impacts on neighboring communities through noise mitigation and other measures, and ensuring full transparency in project ownership.

Governor Abbott stressed that the PUCT and ERCOT must receive and audit this information before any data center projects can move forward. "They cannot make decisions regarding grid stability based on incomplete information," he stated. Any data center company that fails to comply with the audit process will have their approval denied.

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 from the potential negative impacts of data center development.

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