Abbott says QTS will meet Texas data center standards as state reviews industry
Governor Greg Abbott issued a directive requiring an audit of all data centers seeking connection to the Texas energy grid, focusing on energy and water use, tax breaks, and other impacts. QTS Data Centers became the first company to meet these new state standards. The move comes amid growing public opposition to data center growth in Texas.
Texas Governor Greg Abbott has issued a directive requiring the Public Utilities Commission (PUC) and Electric Reliability Council of Texas (ERCOT) to audit all data centers seeking connection to the state's energy grid. This action aims to tighten oversight on the rapidly expanding data center sector in Texas, a move that comes amidst increasing public opposition. A June poll from the Texas Politics Project revealed that 56% of Texans oppose new data centers in their communities.
Following the directive, Gov. Abbott announced that QTS Data Centers is the first major developer to meet the state’s new standards for data center projects, thereby endorsing the new guidelines. The audit will thoroughly examine various aspects of data center operations, including tax breaks received, electricity and water consumption, potential impacts such as noise and traffic, and ownership details. No new data centers will be approved to join the ERCOT grid until these audits are fully completed, although ERCOT anticipates missing an August milestone for its own study on large power users due to the Governor's order.
Texas Railroad Commissioner Wayne Christian, who previously supported data centers, expressed appreciation for the Governor's updated approach. Former Texas Speaker of the House Dennis Bonnen supported Abbott's stance, emphasizing the need to balance national security concerns related to data control with the state's energy grid stability. Conversely, Gina Hinojosa, a Democrat challenging Governor Abbott in the upcoming November election, criticized the order, calling it an insufficient