Texas Energy Agencies Seek More Authority Over Data Center Regulation

Texas Energy Agencies Seek More Authority Over Data Center Regulation

News ClipThe Texas Energy and Power Newsletter·TX·8/2/2026

Texas energy agencies, including the Public Utility Commission and ERCOT, are requesting more authority from lawmakers to regulate data centers. This initiative follows a directive from the governor and is expected to be a central focus of the next legislative session due to declining public opinion regarding data centers and concerns over infrastructure costs.

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Gov: Public Utility Commission, ERCOT, Texas lawmakers, Texas Governor, state regulators

Texas energy agencies, including the Public Utility Commission (PUC) and the Electric Reliability Council of Texas (ERCOT), are pushing for increased authority to regulate data centers. This comes in response to a directive from the governor and positions data center regulation as a primary topic for the upcoming legislative session.

Joshua Rhodes, an energy researcher at the University of Texas, noted that public opinion on data centers is not favorable, signaling a likelihood of new legislation aimed at introducing "discipline into this market." Discussions are ongoing regarding how to prevent data centers from shifting infrastructure costs to consumers, with state regulators currently developing specific policies.