Fermi responds to Gov. Abbott’s AI data center directive aimed at protecting Texas ratepayers
Texas Governor Greg Abbott has issued a directive to state regulators to protect Texans from rising electricity costs caused by data center expansion, calling for data centers to fully fund their electric infrastructure. Fermi, which is developing the Project Matador Campus in Amarillo, stated it will use a private power grid and water-efficient cooling. Xcel Energy is reviewing the Governor's directive.
Texas Governor Greg Abbott has issued a directive to state regulators, including the Public Utility Commission and ERCOT, aimed at protecting Texans from the financial burden of rapid data center expansion. The Governor's letter calls for data centers to fully fund the electric infrastructure required for their operations and directs regulators to identify additional measures to shield residential and small business customers from rising electricity costs.
In response to this directive, Fermi, a company behind the Project Matador Campus in Amarillo, stated that its data center project is being built with its own private power grid designed to generate electricity on-site, thus not relying on the existing electric system. Fermi also plans to implement water-efficient cooling technology and expressed support for the state's push for transparency and conservation in data center operations.
Xcel Energy has also acknowledged the Governor's directive, informing NewsChannel 10 that it is reviewing the order. The utility plans to discuss potential impacts on the regional power grid and its customers next week. The Governor's directive requires the Public Utility Commission and ERCOT to submit a joint report by July 17th.