Fermi responds to Gov. Abbott’s data center directive aimed at protecting Texas ratepayers
Texas Governor Greg Abbott has directed state regulators to ensure data centers fully fund their electric infrastructure and adopt water-efficient cooling systems, rather than passing costs to ratepayers. This directive follows the ongoing development of Fermi America's Project Matador data center near Amarillo, which Fermi states is designed with its own private power grid and advanced cooling to mitigate these concerns.
Texas Governor Greg Abbott has issued a directive to the state's Public Utility Commission (PUC) and the Electric Reliability Council (ERCOT), urging them to implement measures that protect residential and small business customers from bearing the infrastructure costs associated with data center expansion. The governor's order mandates that data centers fully fund their electrical infrastructure rather than offloading these expenses onto ratepayers. Furthermore, Governor Abbott intends to collaborate with lawmakers in the upcoming legislative session to propose new requirements for water-efficient cooling systems and enhanced reporting of electricity and water usage.
This announcement comes as Fermi America continues development on its large-scale Project Matador data center campus near Amarillo. In response to the directive, Fermi America stated that Project Matador is designed to be self-sufficient, generating its own power through a private grid and employing a closed-loop hybrid dry-wet cooling system to reduce evaporative water loss by over 80%. The company emphasized that it is funding its own infrastructure and not seeking ratepayer subsidies, expressing support for the state's focus on transparency, water efficiency, and responsible development. Xcel Energy, a regional utility, has also been approached for comment on the directive's potential impacts on the electric grid and customers in the Texas Panhandle, with a spokesperson indicating discussions on these effects are planned for next week. The PUC and ERCOT are required to submit a joint report to the governor's office by July 17.