AUSTIN, Texas — Texas power grid regulators are asking state lawmakers to expand their authority over data centers after Gov. Greg Abbott directed state agencies to ensure the rapidly growing facilities do not increase electricity costs for residents.
In a letter last month, Abbott instructed the Public Utility Commission of Texas (PUCT) to require data centers to pay for the electric infrastructure needed to connect to the grid and ensure the facilities help lower energy costs for Texans. He also directed the PUCT and the Electric Reliability Council of Texas (ERCOT) to identify additional actions they can take to protect the state’s power grid.
PUCT Chairman Thomas Gleeson responded this month, saying the PUCT and ERCOT have already adopted new requirements for data centers seeking to connect to the grid, improved electricity demand forecasting and reviewed how transmission costs are distributed among consumers.
The agencies are also developing a program that would encourage data centers to reduce electricity use during grid emergencies and are working to ensure large power users pay for the infrastructure required to serve their operations.
Gleeson urged lawmakers to grant ERCOT authority to communicate directly with data centers during emergencies instead of routing requests through utility companies. He also recommended requiring data centers and other large electricity users to register with the state and comply with the Lone Star Infrastructure Protection Act, which restricts foreign-linked companies from controlling critical infrastructure.
University of Texas energy researcher Joshua Rhodes said data centers are expected to become a major issue during the next legislative session as lawmakers weigh how to prevent infrastructure costs from shifting to residential customers