Texas energy agencies respond to governor’s data center directive by requesting more authority from lawmakers
Texas energy agencies, PUCT and ERCOT, are responding to Governor Abbott's directive to regulate data centers. They have already adopted new requirements for data centers connecting to the grid and are developing programs to ensure they pay infrastructure costs and reduce consumption during emergencies. They are also requesting expanded legislative authority to directly communicate with data centers and require state registration.
Governor Greg Abbott has directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to address concerns about data centers' impact on the state's energy grid. In response, PUCT Chairman Thomas Gleeson outlined steps already taken and requested expanded legislative authority.
The agencies have adopted new requirements for data centers connecting to the grid, including ensuring they cover the costs of new electric infrastructure and developing programs to encourage energy reduction during emergencies. These measures largely predate Abbott's directive, initiated in response to a 2025 state law.
Gleeson proposed additional state legislation to further empower regulators, such as allowing direct communication with data centers during energy emergencies instead of through utility companies. He also suggested requiring data centers and large energy consumers to register with the state and comply with the Lone Star Infrastructure Protection Act, which currently applies only to power plants and transmission companies, to prevent foreign-linked companies from accessing critical infrastructure.
University of Texas energy researcher Joshua Rhodes noted that data centers are likely to be a central focus of the next legislative session due to unfavorable public opinion. The debate continues on how to ensure these large electricity consumers pay for necessary infrastructure without burdening other consumers.