Three major data center operators—Power House Data Centers, CoreWeave, and Emergent Data Centers—said they will comply with infrastructure standards established by Texas Governor Greg Abbott for new projects in the state.
Abbott set the standards earlier this summer to ensure data center development does not harm electrical grid reliability, water resources, or residential neighborhoods, and that companies cover their own infrastructure costs rather than shifting expenses to consumers and businesses, according to the governor. "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. "They must not pass costs on to Texas families or interfere with their quality of life."
Data center projects must disclose all taxpayer-funded incentives, detail projected electricity demand and plans for on-site generation, identify water sources and water reuse procedures, and outline measures to minimize impacts on neighboring properties including noise controls and traffic improvements, according to the announcement. One data center company ended operations rather than comply with the standards before beginning construction, Abbott said.
The state's Public Utilities Commission and Electric Reliability Council of Texas will review and audit this information before data center projects can proceed. Any company that fails to comply with the audit process will have its approval denied.