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Texas Takes Steps to Shield Residents from Data Center Costs

KVIA•Friday, July 24, 2026 at 4:53 PM•Gabrielle Lopez

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AI Summary

In response to concerns about rising costs from data center expansions, Texas Governor Greg Abbott announced actions taken by the Public Utility Commission (PUC) and the Electric Reliability Council of Texas (ERCOT) to protect residential ratepayers. Following Abbott's directive on June 10, the agencies will require data centers to bear their own infrastructure costs while also contributing to lower residential electric bills. Key measures include preventing data centers from diverting power from residents, implementing a new interconnection process, and recommending legislative changes to enhance grid reliability. These steps aim to ensure that the growth of data centers does not negatively impact Texas residents or strain state resources.

Key Details: • Governor Abbott's directive was issued on June 10, 2023. • Data centers must pay for their own transmission infrastructure. • New rules prevent data centers from diverting power from ERCOT. • Legislative changes are recommended for the upcoming session regarding data center regulations. • Data centers will be required to register with PUCT and ERCOT for accurate operational data.

public-utility-commission electricity data-centers ercot ratepayers

People & Organizations

TexasPublic Utility CommissionGreg AbbottElectric Reliability Council of TexasEast Texas

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