Gov. Greg Abbott announced Aug. 18 that Riot Platforms and Comanche Circle Data Center will comply with the standards and guidelines he established for data centers operating in Texas.
The two companies join a growing roster of operators that have pledged to meet the framework, which the governor’s office has presented as a test of whether rapid data center growth can proceed without burdening the state’s grid, water supply or residential communities.
“I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way,” Abbott said in the release. “They must not pass costs on to Texas families or interfere with their quality of life.”
Under the standards Abbott set earlier this summer, the release said, he directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to ensure data centers pay for their own electric infrastructure rather than shifting costs onto Texas families and small businesses, reuse their own water, reduce the cost of electricity for Texans, avoid disrupting residential neighborhoods and eliminate reliance on what the governor called outdated taxpayer-funded incentives.
The two agencies will also examine each project individually, according to the release. Companies must disclose taxpayer-funded incentives, grants and abatements tied to a project; detail projected electricity demand and plans for on-site generation; identify water sources, projected use, reuse procedures and water-efficient cooling technologies; outline steps to limit effects on neighboring property owners, including noise mitigation, light controls, setbacks, traffic improvements and emergency response coordination; and disclose project ownership and controlling interests.
The release said the PUCT and ERCOT must receive and audit that information before a data center project can move forward. “The PUCT and ERCOT cannot make decisions to guarantee grid stability and reliability based on substantially incomplete information,” Abbott said. Any company that fails to comply with ERCOT’s audit process is subject to having its approval denied.
The governor’s office said the guidelines are being universally implemented by data centers across the state, and that one data center that could not comply chose to end operations before beginning construction.