Growing list of companies say they will comply with Gov. Abbott’s Texas data center rules

The announcements follow Abbott’s order for state regulators to pause approvals for new data center connections to the Texas power grid.

AUSTIN, Texas — Gov. Greg Abbott announced Tuesday that EdgeConneX, Stream Data Centers and Oracle are among the companies that say they will comply with new guidelines he established for data centers operating in Texas.

The announcements follow Abbott’s order for state regulators to pause approvals for new data center connections to the Texas power grid while they evaluate the industry’s effects on the power supply, water resources and nearby communities.

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Gov. Abbott directed the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to conduct “a comprehensive verification and audit” of all data center applicants “before any additional data centers are approved to move forward.”

Austin-based Oracle said it supports Gov. Abbott’s efforts “to ensure data centers are built responsibly and deliver real benefits for the places they call home.” Dallas-based Stream Data Centers also expressed support for “additional utility audits and greater regulatory oversight on grid usage.”

EdgeConnex is developing three data center campuses on about 1,400 acres along FM 535 in Bastrop County, where construction is underway. The company said it supports Abbott’s efforts to “advance greater transparency, infrastructure planning, and local community safeguards around data center development across the state.” 

“I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way,” Gov. Abbott said in a statement. “They must not pass costs on to Texas families or interfere with their quality of life.”

Some critics, such as Environment Texas Executive Director Luke Metzger, say that Gov. Abbott’s guidelines don’t go far enough. Metzger wrote in a press release on August 3 that “The next steps are setting real limits on water use, noise pollution, and ending tax breaks that ask Texans to subsidize harm to our environment.”

Gov. Abbott also received criticism from President Trump, who told Punchbowl News that the temporary halt was a “mistake.”

Abbott said all data centers must comply with the following: 

Pay for their electric infrastructure instead of shifting costs onto Texas families and small businesses.Reuse their own water.Reduce the cost of electricity for Texans.Do not disrupt residential neighborhoods to preserve Texas’ quality of life.Pay their own way and eliminate reliance on outdated taxpayer-funded incentives.

The governor’s office said the commission and ERCOT must receive and audit the information before data center projects can move forward.

The review will examine whether developers are receiving tax incentives, estimate how much electricity and water each facility will consume, and evaluate plans to address effects on nearby communities.

Companies that fail to comply with ERCOT’s audit process could have their approvals denied, Abbott said.