Abbott: Data Centers Must Pay For Their Infrastructure
Texas Governor Greg Abbott has directed state regulators, including the Public Utility Commission and ERCOT, to ensure that the rapid expansion of data centers does not lead to higher infrastructure costs or electricity bills for Texans. He is also advocating for new data centers to implement water-efficient technologies and noise reduction measures, and for the repeal of sales tax exemptions.
Texas Governor Greg Abbott recently issued a directive to state regulators, including the Public Utility Commission (PUC) and grid operator ERCOT, demanding that the burgeoning data center industry bear the costs of necessary infrastructure upgrades. The Governor emphasized that the rapid expansion of data centers should not result in increased burdens or higher residential electricity bills for Texans. This move comes as the state grapples with the impact of significant data center development on its power grid and public resources.
In addition to the financial directives, Governor Abbott is pushing for new data centers to adopt water-efficient technologies and implement effective noise reduction measures. He has also indicated a desire for state lawmakers to repeal existing sales tax exemptions and other "outdated or unnecessary incentives" for data centers, signaling a broader effort to reassess the state's approach to the industry's growth.
The PUC and ERCOT have been instructed to submit a joint memorandum to the Governor's office next month. This report is expected to outline the actions they can take under current law, detail statutory limitations, and propose legislative changes necessary to achieve Abbott's objectives regarding data center oversight.