Governor Abbott Advocates for Ratepayer Protections Against Data Center Costs

Texas Governor Greg Abbott has mandated that state utility officials implement measures to shield residents from the financial impacts of data center infrastructure costs. In a recent directive, Abbott emphasized the need for data centers to minimize costs for residential electricity users and avoid excessive water consumption. He has instructed the Public Utility Commission (PUC) and the Electric Reliability Council of Texas (ERCOT) to identify protective actions by July 17 and to reduce transmission costs for residential ratepayers by July 31. Additionally, Abbott plans to collaborate with the Legislature in the upcoming session to establish formal protections, including requirements for water-efficient cooling systems and updated tax incentives.

Key Details: • PUC must require data centers to cover their electric infrastructure costs. • Actions to protect ratepayers must be reported to the governor by July 17. • Transmission cost reductions for residential customers are due by July 31. • Future legislation will address water efficiency and noise reduction for data centers.