Overview
- In a June 10 letter Governor Greg Abbott told the Public Utility Commission of Texas and ERCOT to submit a joint memorandum by July 17 and to begin actions by July 31 to ensure data centers do not shift electrical infrastructure costs onto residential customers.
- Abbott asked the Legislature to require new facilities to add power generation or pay fully for grid interconnection, mandate closed‑loop or water‑efficient cooling, require annual electricity and water reporting, and repeal data‑center sales tax exemptions.
- ERCOT has received unprecedented connection requests — reported at hundreds of gigawatts — driven mostly by data‑center projects, a volume far above current peak demand that regulators say could strain transmission and distribution.
- Local officials in East Texas, including Angelina County Judge Keith Wright, say state law limits counties’ ability to impose moratoria or zoning controls, leaving communities dependent on negotiating tax abatements and mitigation with developers.
- Industry groups say many operators already use advanced cooling and community measures and want to work with regulators, but several counties that tried local moratoria have faced lawsuits, underscoring legal and fiscal fights to come.