Texas Has 5 New Rules for Data Centers as AI Backlash Grows

Texas Governor Greg Abbott has outlined five key disclosures data centers must reveal to connect to the state grid.

The move comes amid growing public backlash over the rapid expansion of data centers, with state officials seeking greater transparency into how much electricity and water these facilities will require.

What Abbott Wants Data Centers to Disclose

This month, Abbott ordered a pause on data center approvals. The governor directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit all data centers advancing through ERCOT's interconnection process. Any center that fails state requirements will be denied a grid connection.

The requirements focus on five areas: public funding, power use, water consumption, community impact, and ownership. Companies must reveal any taxpayer-funded incentives they receive.

They must detail projected power demand and on-site generation plans. They must also identify water sources, reuse methods, and community measures such as noise and traffic controls.

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