Texas Governor Greg Abbott said Galaxy Digital, Compass Datacenters and Montera Infrastructure have agreed to comply with new state standards and regulatory requirements for data center construction. The guidance is being applied to data center projects across Texas and is intended to keep expansion from adding costs for residents or disrupting grid reliability, water supplies and community quality of life.
Under the new rules, operators must pay for their own power infrastructure rather than shifting construction and operating costs onto Texas households and small businesses. They are also required to recycle their own water use, take steps to reduce overall electricity costs, limit noise, lighting and traffic impacts on nearby residential areas, and reduce reliance on government subsidies and taxpayer funding so projects can stand on their own financially.
The Public Utility Commission of Texas, or PUCT, and the Electric Reliability Council of Texas, or ERCOT, will review projects. Companies must disclose ownership structures, subsidy details, power demand forecasts, plans for self-built generation, water use arrangements and measures to mitigate community impact.
Texas Governor Greg Abbott said Galaxy Digital, Compass Datacenters and Montera Infrastructure have committed to follow new state standards and regulatory requirements for data center construction.
The guidance is being applied to data center projects across the state. Its stated aim is to make sure data center expansion does not raise burdens on residents or affect grid stability, water supply and local quality of life.
Requirements cover power, water and nearby communities
Under the new rules, data center operators must meet several conditions. They must bear the costs of power infrastructure themselves and cannot pass construction or operating costs on to Texas households and small businesses. They must recycle their own water use to ease pressure on public water resources, take steps to lower overall electricity costs, avoid disrupting residential communities by reducing noise, light and traffic effects, and cut reliance on government subsidies and taxpayer funds so projects are financially self-supporting.
PUCT and ERCOT to review project disclosures
The Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) will review data center projects. Companies will be required to disclose ownership structures, government subsidy arrangements, projected power demand, plans for self-built generation, water use plans and measures to mitigate community impact.
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