Abbott recommends sweeping data center regulation, including eliminating sales tax exemption
Abbott wants regulators to make data centers pay infrastructure costs and curb water use, while state officials cite 439 gigawatts of requested grid capacity.
- On Wednesday, Governor Greg Abbott directed the Public Utility Commission and Electric Reliability Council of Texas to force data centers to pay for their own infrastructure, protecting residential electric bills from industry expansion.
- Driven by reports of data centers straining resources, the state has seen rising opposition from residents across Texas. ERCOT reported 439 gigawatts of power capacity requests, five times the all-time peak demand.
- Mandates include reducing residential transmission costs by July 31, while Abbott plans future legislation repealing outdated tax incentives for these facilities.
- The Data Center Coalition stated it "looks forward to working with the governor and state regulators," noting member companies already deploy advanced cooling technologies and consult with local communities.
- Lawmakers will study data center water usage during a June 23 hearing as Abbott prepares to codify these regulatory actions during the 2027 legislative session.
11 Articles
11 Articles
Texas Governor Seeks Consumer Protection From Data Center Costs
(Bloomberg) — Texas Governor Greg Abbott called on state regulators to better protect ratepayers from shouldering the costs of the data center buildout, the latest sign of growing political scrutiny over the AI-driven surge in electricity demand.
Gov. Abbott directs ratepayer protections from data center infrastructure costs
AUSTIN (KVIA) -- Wednesday, Texas Governor Greg Abbott directed state utility officials to protect residents from paying for data center infrastructure costs. “Data centers must operate in ways that reduce costs for residential electricity customers, do not drain water needed for our communities, and take into consideration the needs of our neighborhoods,” said Gov. Abbott in a statement. He sent a letter to the Public Utility Commission of Texa…
Greg Abbott recommends data center industry crack down
The recommendations for legislative action amount to a striking call for industry regulation by the Republican governor in a state that has long prided itself on being a favorable environment for business.
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