Gov. Greg Abbott announced on Thursday that planned data center construction by Quality Technology Services will comply with a comprehensive set of guidelines to ensure Texans are not footing the bill for the costly projects.
QTS publicly commits to paying for its own energy rather than passing the costs onto local consumers. The company claims its data centers do not use any water once operational.
“As demand for digital infrastructure continues to grow, we support policies that encourage responsible development, protect resources, ensure ratepayers see benefits of energy investments on their utility bills, and foster strong partnerships with the communities where data centers operate,” said Tag Greason and David Robey, Co-CEOs of QTS.
“We welcome Governor Abbott’s leadership and look forward to working with him to establish clear guardrails for the industry and help ensure all providers operate with a commitment to transparency, accountability and responsible growth.”
In June, Abbott directed the Public Utility Commission and ERCOT to ensure data centers pay for their own electric infrastructure costs, reuse water in closed-loop systems, reduce electricity costs for residents, and pay their own way instead of relying on taxpayer-funded programs.
“Let’s be clear: the growth of data centers must not come before the quality of life of Texans,” said Abbott on Thursday. “I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way. They must not pass costs on to Texas families or interfere with their quality of life.”
“QTS is setting an example of responsible data center development by embracing my standards, and any company that wants to do business in Texas should expect to do the same,” added Abbott.
Abbott has also directed ERCOT and the PUCT to audit all pending data center projects to ensure compliance with the new directives. Any company that does not meet the criteria will be denied interconnection to the Texas grid.
“ERCOT is reviewing Governor Abbott’s letter concerning data centers and will work with the Public Utility Commission of Texas to implement the Governor’s directive, including postponement of the Batch Zero transmission planning study,” the grid operator said in a statement to Fox Digital this week.
Since issuing his directives, several companies have said that they will ensure compliance with the new standards. However, Diode Ventures, a company that failed to appear to testify before the House Committee on Natural Resources in June, will not pursue a data center project because it does not comply with Abbott’s standards.
