Greg Abbott recommends data center industry crack down
Texas Gov. Greg Abbott has released sweeping regulatory recommendations for the state's data center industry, proposing legislative action for the 2027 session. These proposals aim to ensure data centers bear the costs of their growth and soaring power demands, rather than burdening Texas ratepayers.
Texas Gov. Greg Abbott has issued comprehensive regulatory recommendations targeting the data center industry, urging the state Legislature to pass new measures in its 2027 session. The Republican governor's call for industry regulation marks a significant shift in Texas, a state traditionally known for its business-friendly environment.
The proposals, outlined in a letter to state regulators, are designed to address the rapid expansion of artificial intelligence-driven development and the resulting surge in power demands. Abbott's recommendations emphasize that data centers should be responsible for the costs associated with their growth, rather than those costs being passed on to Texas ratepayers.