Meta has agreed to comply with new standards for data center development in Texas, Gov. Greg Abbott announced Monday.
The commitment comes one week after Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to audit data center projects seeking to connect to the state’s power grid.
Under the standards, data center operators are expected to pay for their own electric infrastructure rather than passing those costs along to other customers. Companies are also expected to provide details about their electricity demands and plans for on-site generation or other measures aimed at reducing their reliance on the ERCOT grid.
The requirements also address the growing concerns surrounding the amount of water used by large data centers. Developers must identify their water sources, estimate projected water use, detail water reuse procedures, and identify water-efficient cooling technologies.
Projects will also be reviewed for their potential impact on surrounding communities, including noise, lighting, traffic, emergency response, and setbacks from neighboring properties.
Companies must disclose project ownership and any taxpayer-funded incentives, grants, tax abatements, or other public financial assistance they receive.
Abbott said the requirements are intended to prevent the rapid expansion of data centers from increasing costs for Texas residents or straining the state’s electric and water infrastructure.
“The PUCT and ERCOT cannot make decisions to guarantee grid stability and reliability based on substantially incomplete information,” Abbott said.
State regulators must receive and audit the required information before projects are allowed to move forward. Companies that fail to comply with ERCOT’s audit process could have their projects denied.
Texas has experienced rapid growth in data center development, driven in large part by increasing demand for artificial intelligence and cloud computing infrastructure.
