Gov. Greg Abbott has announced that several major data center developers will comply with new standards, set forth earlier this summer, that are aimed at ensuring Texans do not foot the bill for the costly projects.
Meta, MARA Holdings, Skybox, OpenAI, and Digital Realty have all announced that they will follow Abbott’s data center directives and participate in the state’s interconnection-review process for applicable projects.
“I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way,” said Abbott. “They must not pass costs on to Texas families or interfere with their quality of life.”
Additionally, per an August 3 order from Abbott, the Public Utility Commission of Texas (PUCT) and ERCOT will audit data centers advancing through the interconnection process to ensure that they will:
- Pay their own way by disclosing all taxpayer-funded incentives, grants, abatements, and other public financial assistance tied to the project.
- Provide their own power by detailing projected electricity demand and plans for on-site generation or other measures to reduce reliance on the ERCOT grid.
- Protect Texas water resources by identifying water sources, projected water use, water reuse procedures, and water-efficient cooling technologies.
- Outline measures to reduce impacts on neighboring property owners and communities, including noise mitigation, light controls, setbacks, traffic improvements, emergency response coordination, and other community protection measures.
- Provide full transparency by disclosing project ownership and controlling interests.
“The PUCT and ERCOT cannot make decisions to guarantee grid stability and reliability based on substantially incomplete information,” Abbott continued.
Since issuing his directives, several companies have said that they will ensure compliance with the new standards.
“Meta commends Texas Governor Greg Abbott’s leadership and welcomes his continued efforts to protect ratepayers, conserve water, and promote responsible data center development in Texas,” a company spokesperson said in response to Abbott’s new standards.
“We appreciate the Governor’s leadership in setting a higher bar for the industry, and we look forward to continuing our positive engagement with his office and with Texas regulators. Our goal is to be a responsible partner in Texas: one that listens, invests in the communities where we operate, and supports growth that works for the state for the long term,” according to a written MARA release.
MARA Holdings has recently been involved in plans to build two new data centers in Hood County, but has faced significant backlash from the community.
In a recent lawsuit, MARA’s parent company argued the county missed its 30-day deadline to approve or deny the plans—meaning the projects were approved under the state’s Local Government Code. However, Judge Bryan Bufkin rejected the argument and ruled in Hood County’s favor. National CRE Holdings and Greenland Capital, the companies responsible for the developments, filed a notice of appeal on July 15, challenging Bufkin’s decision before the Second Court of Appeals.
Notably, Diode Ventures, which did not appear to testify before the House Committee on Natural Resources in June, withdrew its proposed Henderson County data center after determining that the project did not meet Abbott’s directives or community expectations.
