TEXAS — Gov. Greg Abbott issued recommendations on Tuesday regarding the oversight and operations of data centers in Texas.
In a letter to the state’s Public Utility Commission (PUC) chairman and the Electric Reliability Council of Texas’ (ERCOT) chief executive officer, Abbott said the proposals are for the next legislative session and “designed to ensure data centers shoulder the costs of their growth rather than Texas ratepayers.”
Abbott said he plans to work with the legislature on requiring new centers to cover the costs of their electrical infrastructure. He wants to ensure they “add to Texas’ electric capacity, not just its electric demand,” his letter said.
He also wants to require “water-efficient technologies such as closed-loop cooling systems” for new data centers. Many Texans have worried about data centers’ water usage in their communities.
To monitor water and electricity usage, Abbott wants large data centers to send the PUC a required annual report on their usage data.
Other recommendations include repealing sales tax exemptions for data centers and using “setbacks, noise-reduction technology, and other measures” to limit the impact on nearby communities.
Abbott also directed the PUC and ERCOT to create a joint memorandum reviewing how they’ve mitigated data centers’ impact on Texans, both financially and communally, with a submission date of no later than July 17.
The governor also expects the PUC to “initiate action to reduce residential ratepayer transmission costs by July 31.”