By Julie Tomascik
Editor

Several major data center companies have agreed to comply with standards established by Gov. Greg Abbott as Texas continues to address concerns over the industry’s rapid expansion.

Since Aug. 7, Abbott has announced commitments from at least 15 companies, including Google, Meta, Oracle, OpenAI, Digital Realty, Core Scientific and Vantage Data Centers.

The companies agreed to follow guidelines aimed at protecting the electric grid and water supplies to limit impacts on neighboring communities and ensure data centers pay the costs associated with their operations.

“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. “They must not pass costs on to Texas families or interfere with their quality of life.”

Earlier this summer, Abbott directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit data center projects before allowing them to move forward.

Developers must disclose electricity and water demands, plans for on-site power generation or other measures to reduce grid demand, water sources and cooling systems. They also must provide information on tax incentives and steps to reduce impacts such as noise, lighting and traffic.

One proposed data center that could not meet the standards ended its plans before construction began, according to Abbott’s office.

The increased scrutiny comes as data centers account for about 90% of the proposed new electricity demand for ERCOT. The scale and rapid pace of development have raised concerns about the potential impacts on agriculture and rural communities.

Texas Farm Bureau (TFB) supports responsible economic development but has urged state leaders to ensure data center expansion does not come at the expense of landowners, natural resources or rural infrastructure.

TFB sent a letter to state leaders urging a balanced approach that protects landowners, natural resources and the state’s economy. The organization called for greater transparency and analysis of electricity demand, water use, land conversion, tax impacts and infrastructure needs, as well as appropriate oversight of where and how data centers are built and operated.

“Texas Farm Bureau believes that sound policy begins with sound data,” TFB President Russell Boening wrote in the letter. “Proactive analysis will help ensure that data center development proceeds in a manner that protects Texas’ agricultural heritage, conserves vital natural resources and supports the long-term vitality of rural communities—while still welcoming responsible investment and innovation.”