Gov Abbott directs PUC and ERCOT to shield Texans from Data Center Infrastructure costs
Governor Greg Abbott has directed the Public Utility Commission of Texas (PUC) and ERCOT to take immediate action to protect residential ratepayers from the costs associated with data center expansion. He emphasized that data centers must reduce costs for Texans, conserve water, and consider community needs. The Governor also plans to work with the Legislature to codify these protections and introduce legislation requiring water-efficient cooling, accurate usage reporting, phasing out tax incentives, and adopting community protection practices like setbacks and noise reduction.
Texas Governor Greg Abbott has issued a directive to the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to implement measures aimed at safeguarding residential electricity customers from the financial burdens imposed by expanding data center infrastructure. In a letter addressed to PUC Chairman Thomas Gleeson and ERCOT CEO Pablo Vegas, Governor Abbott stressed the importance of data centers operating in a manner that curbs costs for residents, avoids excessive water consumption, and respects community needs.
The Governor further announced his intention to collaborate with the Texas Legislature during the upcoming session to formalize these protections into law. Proposed legislation will focus on ensuring data centers contribute to the state's electric capacity rather than solely increasing demand. Key legislative initiatives include requiring data centers to utilize water-efficient cooling systems, provide precise data on their electricity and water usage for state planning purposes, phase out outdated tax incentives, and adopt community-protective measures such as setbacks and noise reduction. The directive underscores a move towards more regulated data center development in Texas to balance industry growth with public welfare.