Governor Greg Abbott announced Aug. 11 that EdgeConneX and Stream Data Centers will comply with the standards and guidelines he established for data center development in Texas.
“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 a news release from his office. “They must not pass costs on to Texas families or interfere with their quality of life.”
Earlier this summer, the governor directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to ensure data centers pay for their own electric infrastructure instead of shifting costs onto Texas families and small businesses, reuse their own water, reduce the cost of electricity for Texans, avoid disrupting residential neighborhoods, and pay their own way without relying on taxpayer-funded incentives, according to the release.
As part of the review process, the two agencies will examine how each data center project discloses taxpayer-funded incentives, grants, abatements and other public financial assistance; details projected electricity demand and plans for on-site generation or other measures to reduce reliance on the ERCOT grid; identifies water sources, projected water use, reuse procedures and water-efficient cooling technologies; and outlines steps to reduce impacts on neighboring property owners, including noise mitigation, light controls, setbacks, traffic improvements and emergency response coordination. Projects must also disclose their ownership and controlling interests, the release stated. The PUCT and ERCOT must receive and audit this information before data center projects can move forward.
“The PUCT and ERCOT cannot make decisions to guarantee grid stability and reliability based on substantially incomplete information,” Abbott said. According to the release, any data center company that fails to comply with ERCOT’s audit process is subject to having its approval denied.
Since the directives were issued, data centers across the state have either announced full compliance or announced they are ending their projects, the governor’s office said, adding that the standards provide guardrails that protect Texas communities.