New regulations from Gov. Abbott put data centers through audits
Governor Greg Abbott has mandated new regulations, requiring state regulators to audit all proposed data center projects in Texas before they can connect to the power grid. Developers must disclose projected electricity and water use, taxpayer incentives, and community impact. This initiative addresses growing concerns from Central Texas communities regarding data centers' resource demands and effects on rural areas.
Governor Greg Abbott has implemented new regulations in Texas, mandating that state regulators audit all proposed data center projects. This move requires developers to disclose their projected electricity and water usage, any taxpayer incentives received, and measures to mitigate impacts on surrounding communities before connecting to the Texas power grid. Projects failing to comply will be denied grid access.
The directive, which builds on an earlier order from June, comes amidst increasing concerns from Central Texas communities and local leaders regarding data centers' significant demands on water and electricity, as well as their effects on rural neighborhoods. McLennan County resident Chris Gravitz described the audits as a necessary step, though he advocates for a complete pause on development and a legislative review to further protect property owners.
State Representative Pat Curry echoed the need for "guardrails" and monitoring of data centers' electricity and water consumption, anticipating additional legislation to regulate the rapidly expanding industry. The governor's action is timely, as nearly 90% of new power requests to ERCOT are currently linked to data center projects. McLennan County commissioners recently voted against an agricultural development district aimed at protecting farmland, highlighting the ongoing local debates over large-scale developments.