Texas data centers will need to fund their own electrical infrastructure rather than shifting costs to residents, under new standards announced by Governor Greg Abbott.
Three companies—Prologis, Ecolab, and Crusoe—said they will comply with the standards. Abbott directed the state's utility regulators to ensure data centers meet requirements including water reuse, grid stability contributions, avoiding disruption to residential areas, and reliance on their own funding rather than taxpayer incentives.
The Public Utilities Commission of Texas and Electric Reliability Council of Texas (ERCOT) will audit each project before approval, examining power generation plans, water sourcing and reuse procedures, noise mitigation, and project ownership disclosure.
Abbott said the standards address concerns about strain on the grid and local communities. "They must not pass costs on to Texas families or interfere with their quality of life," he said in a statement.
Since announcing the standards this summer, data centers across Texas have announced either full compliance or the end of their projects. One data center company withdrew before construction began rather than meet the requirements, according to the governor's office.