More Data Centers Agree to Texas Governor’s New Standards

Texas Data Center Companies Agree to New State Standards

Two major data center companies have agreed to follow new standards established by Governor Greg Abbott as Texas works to manage the industry's rapid growth.

Abbott announced Tuesday that EdgeConneX and Stream Data Centers have committed to complying with the standards and guidelines he established for data center development in Texas.\

The standards are designed to make sure large data centers help pay for the infrastructure they use, protect the state’s water supply and avoid shifting costs onto Texas families and small businesses.

Abbott said the companies must also take steps to protect nearby communities and reduce their impact on the electric grid.

What Texas Is Requiring

Under Abbott’s directives, data center projects must provide detailed information about:

• Electricity demand and plans for on-site power generation.
• Electric infrastructure costs.
• Water sources, expected water use and water-reuse plans.
• Cooling systems and water-saving technology.
• Noise, lighting, traffic and other impacts on nearby neighborhoods.
• Emergency response plans.
• Ownership and controlling interests.
• Any taxpayer-funded incentives, grants, abatements or other public assistance.

The Public Utility Commission of Texas and ERCOT will review and audit the information before a data center project can move forward.

Abbott said the goal is to make sure data centers “pay their own way” rather than passing costs on to Texas residents.

More Companies Could Follow

EdgeConneX and Stream Data Centers join other data center companies that have either agreed to comply with the standards or announced they are ending planned projects since Abbott issued the directives earlier this summer.

Abbott said the standards are intended to provide guardrails for the continued growth of the data center industry while protecting Texas communities, water resources and the state’s electric grid.

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Texas Says, "Comply Or Deny"

Companies that fail to comply with the ERCOT audit process could have their projects denied.

All told, the message from the Governor’s office is pretty simple: Data centers are welcome in Texas, but they’re going to have to pay their own way and play by the state’s rules.

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