Texas leaders call for data center rules to become law

News Clip3:48CBS TEXAS·Keller, Tarrant County, TX·8/17/2026

Texas leaders are actively discussing and implementing new regulations for data centers across the state due to growing concerns over power, water usage, and community impacts. Governor Greg Abbott has issued directives, including a pause on grid interconnections and an audit of data centers. Legislators, like Vicki Goodwin, are advocating for these directives to be codified into enforceable state law to ensure long-term oversight.

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Gov: City of Keller, Public Utility Commission of Texas, ERCOT, Governor of Texas, Texas State Legislature

The video highlights growing concerns across Texas regarding data centers, particularly their impact on power, water resources, and local communities. Democratic candidate for Lieutenant Governor Vicki Goodwin has been prominent in rallies opposing data centers, advocating for enforceable state laws to regulate them. These local concerns, exemplified by a specific data center project near Keller and Westlake which faced formal opposition from the City of Keller, have garnered the attention of state leaders.

In response to public pushback, Governor Greg Abbott has issued several directives since June. Most notably, he recently ordered the Public Utility Commission of Texas and ERCOT to conduct a comprehensive audit of all data centers undergoing the grid interconnection process, including a recent pause on new connections. This audit requires developers to disclose details such as ownership, power procurement, total energy and water consumption, and plans for mitigating community impacts like noise and light pollution. Data centers must comply with these requirements and state law to connect to the Texas power grid. The Governor's guidelines also encourage data centers to provide their own power and water, reuse water, and avoid building in local neighborhoods, while also calling for an end to state economic incentives.

While the Data Center Coalition, representing 44 member companies, expressed support for the Governor's new approach in a letter, Goodwin emphasized the need for legislative action. She believes the Governor's directives are a good first step but require codification into law to ensure enforceability, suggesting a special legislative session is necessary. Republican Congressman Pat Fallon of Frisco also praised the Governor's policy, acknowledging it as a thoughtful step taken in response to constituent concerns. Lawmakers continue to discuss these controversial topics despite the legislature not being in session.