Energy agencies want more authority over Texas data centers
Texas energy agencies are requesting expanded authority from state lawmakers to regulate data centers, following a directive from Gov. Greg Abbott. The Public Utility Commission of Texas (PUCT) and ERCOT are implementing new requirements for data centers connecting to the grid and are proposing legislation to improve direct communication with facilities during emergencies and require state registration.
Gov. Greg Abbott has directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to increase regulation on data centers' use of the state's power grid. The directive specifically calls for ensuring data centers contribute to lower energy bills for residents and bear the full costs of their electric infrastructure. Abbott also mandated the agencies review their existing authority to safeguard Texans' interests.
In response, PUCT Chairman Thomas Gleeson outlined steps already taken and proposed new legislation. The agencies have implemented new requirements for data centers connecting to the grid, ensured existing power plants continue to serve residential customers, and improved cost distribution and energy forecasting. They are also developing a program to encourage data centers to reduce consumption during anticipated energy emergencies.
Gleeson further proposed that state regulators be granted direct communication channels with data centers for emergency energy reduction requests, rather than routing through utility companies. He also suggested requiring data centers to register with the state and comply with the Lone Star Infrastructure Protection Act, which currently restricts foreign-linked companies' access to critical infrastructure but does not yet apply to data centers. University of Texas energy researcher Joshua Rhodes anticipates data center regulation will be a key focus of the upcoming legislative session, noting public opinion is not favorable toward data centers.