AUSTIN, Texas — Meta has agreed to comply with new Texas standards for data centers as Gov. Greg Abbott orders state regulators to conduct comprehensive reviews of proposed projects before they can connect to the state’s electric grid.
Abbott said the standards aim to ensure data centers pay for their own infrastructure, protect Texas’ electricity and water supplies, and limit their impact on nearby communities.
“I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way,” Abbott said in a statement. “They must not pass costs on to Texas families or interfere with their quality of life.”
The governor directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to audit data center projects and verify key information before approving grid connections. Projects that fail to meet the requirements could be denied access to the grid.
Under the guidelines, data center developers must:
- Pay for their electric infrastructure and disclose public financial assistance, grants and tax abatements.
- Provide projected electricity demand, plans for on-site power generation, water sources and water-efficient cooling or reuse systems.
- Address noise, lighting, setbacks and traffic impacts on surrounding communities.
- Disclose project ownership and controlling interests.
The directive comes as ERCOT evaluates requests for more than 474 gigawatts of electricity capacity. About 90% of those requests are tied to data center projects, according to the governor’s office. The total requested capacity is more than five times the Texas grid’s record peak demand.
Abbott said regulators need complete information before determining whether projects can connect to the grid.
“The PUCT and ERCOT cannot make decisions to guarantee grid stability and reliability based on substantially incomplete information,” Abbott said.
Other technology and data center companies have also responded to the standards.
Amazon has told the governor it will work with Texas and comply with the requirements. OpenAI also pledged to follow the standards.
Google welcomed the guidelines and said it supports efforts to ensure data centers address energy and water demands while creating jobs.
QTS also said it plans to comply with the requirements and work with local communities and regulators.
Diode, however, said it did not meet the standards and will not pursue a proposed data center project in Henderson County.