Texans, tech companies react to Gov. Abbott's call for data center guidelines
Texas Governor Greg Abbott has taken action to address public backlash against data centers, proposing guidelines for their energy and water usage and directing state agencies to conduct audits. Several major tech companies, including Google, Microsoft, and Meta, have indicated their compliance with the governor's directives. The initiatives aim to ensure data center costs are not passed to residents and to mitigate environmental impacts.
Texas Gov. Greg Abbott has responded to public and community concerns regarding the environmental and energy impacts of data centers across the state, outlining new directives and priorities for the upcoming legislative session. In June, the governor issued a letter to the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT), instructing them to ensure that data center operational costs are not transferred to Texas residents.
Abbott's proposed guidelines, which he intends to prioritize in the next legislative session, include mandates for data centers to cover their own electricity expenses and adopt water-efficient technologies, such as closed-loop cooling systems. This comes as the University of Texas projects data centers could account for 3% to 9% of the state's water consumption by 2040, raising significant concerns in a drought-prone region.
Further action was taken in August when Abbott directed PUCT and ERCOT to conduct audits on all data centers seeking connection to the state's electrical grid. In response, over a dozen companies, including tech giants Google, Microsoft, and Meta, have announced their commitment to comply with these new guidelines. Google affirmed its alignment with the audit requirements, while Microsoft detailed its Community-First AI Infrastructure Initiative, which pledges to pay for its own electricity and minimize water use, a stance echoed by Meta.
Despite the governor's efforts, some experts remain skeptical. Ed Hirs, an energy fellow at the University of Houston, contends that data centers and cryptocurrency miners have already increased electricity prices by at least 5%. Hirs also warns that the grid is unprepared for the approximately 90% of new connection requests originating from data centers, fueling a debate among Texans, some of whom support Abbott's actions while others believe they do not go far enough.