Three major data center companies—New Era Energy & Digital, Switch, and Hanwha—have agreed to comply with infrastructure standards for data center development established by Governor Abbott. Abbott said the standards are designed to "protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way." One data center company ended its planned project after determining it could not meet the requirements.
Under Abbott's standards, data centers must pay for their own electrical infrastructure instead of shifting costs to Texans, reuse their own water, reduce electricity costs for consumers, avoid disrupting neighborhoods, and eliminate reliance on taxpayer incentives. The Public Utilities Commission of Texas and the Electric Reliability Council of Texas will review each project for compliance.
Operators must disclose all public financial assistance tied to their projects, including grants and abatements; detail projected electricity demand and plans for on-site power generation; identify water sources and recycling procedures; and outline measures to reduce community impacts including noise and traffic control. The agencies must audit this information before approving any project.
Abbott said any company failing to comply with the audit process will face approval denial. Since issuing the directives, data centers across the state have either announced their compliance or decided to end their projects.