Texas energy agencies respond to governor's data center directive by requesting more authority
Texas energy agencies, the Public Utility Commission of Texas (PUCT) and ERCOT, are seeking expanded authority from state lawmakers to regulate data centers. This follows a directive from Gov. Greg Abbott to rein in these facilities, ensuring they lower energy bills and pay for their infrastructure costs. The agencies have already adopted new requirements and are proposing legislation for direct communication with data centers during energy emergencies and mandatory state registration.
Texas's power grid operators, the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT), are pushing for expanded regulatory authority over data centers. This comes in response to a directive from Gov. Greg Abbott last month, urging the agencies to ensure data centers lower energy bills and cover the costs of their electric infrastructure when connecting to the grid. Abbott also asked the agencies to review their current powers and identify actions to protect Texans.
PUCT Chairman Thomas Gleeson responded by detailing steps already taken, including new requirements for data centers joining the grid and measures to ensure existing power plants continue serving residential consumers. The agencies are also working to ensure large energy consumers pay for new infrastructure and are developing a program to encourage data centers to reduce energy consumption during anticipated emergencies.
Gleeson also outlined potential state legislation to further empower regulators. He suggested allowing direct communication with data centers during emergencies, requiring data centers to register with the state, and ensuring compliance with the Lone Star Infrastructure Protection Act, which currently applies only to power plants and transmission companies.
University of Texas energy researcher Joshua Rhodes anticipates data centers will be a major focus of the next legislative session, noting that public opinion on these facilities is not favorable. Discussions are ongoing regarding how data centers will cover the costs of their necessary infrastructure without burdening other consumers.