AUSTIN, Texas – Data centers coming to Texas now face a more rigorous process for opening in the state after new regulations were announced by state agencies.
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What we know:
The Public Utilities Commission of Texas and the Electric Reliability Council of Texas published the new rules this week as an answer to a sent by Texas Gov. Greg Abbott on June 10.
Among the is a requirement that data centers pay for transmission infrastructure built for them and a screening process to prevent developments from putting too much pressure on the electric grid.
The new rules also require data centers to quickly reduce their power consumption when ERCOT orders them to do so.
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What they’re saying:
Abbott, who has seemingly shifted his position on data centers after Texans have voiced their concerns over the resource-hungry projects, said the regulations will keep power bills in check.
“I directed the Public Utility Commission and ERCOT to protect Texans from the costs of data center expansion and they are putting that direction into action,” Abbott said in a news release Friday. “Residential ratepayers will not foot the bill for this industry’s growth. These actions keep electric bills affordable and protect the water our communities need.”
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What’s next:
Both the PUC and ERCOT also called for an expansion of the Lone Star Infrastructure Act to protect the grid from foreign actors via data centers. They also want their data center regulatory roles to be clarified.
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