Data center construction is booming in Texas. Favorable factors could catapult it to the lead the nation
Several major data center companies have agreed to comply with new Texas standards aimed at protecting the state’s electric grid, water resources and residential ratepayers as demand for artificial intelligence and cloud-computing facilities continues to grow.
Gov. Greg Abbott announced that Skybox Datacenters, Digital Realty and MARA have committed to meeting the standards and guidelines established by the state. Their commitments follow a similar announcement from QTS Data Centers, which operates four facilities in Texas.
The growing list of companies agreeing to the requirements comes after Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to conduct a comprehensive review of data center projects seeking connections to the state’s power grid. “I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way,” Abbott said. “They must not pass costs on to Texas families or interfere with their quality of life.”
Under the standards, data center developers will be expected to pay for the electric infrastructure needed to serve their facilities rather than shifting those expenses to residential customers and small businesses. Developers will also be expected to reduce their reliance on the ERCOT grid by providing details about on-site power generation or other measures designed to meet their electricity needs.
Water use will also receive increased scrutiny. Companies must identify where their water will come from, how much they expect to use and what conservation or reuse practices will be incorporated into their operations. Water-efficient cooling technologies, including closed-loop cooling systems, are among the measures being encouraged by the state. Projects will also be reviewed for their potential impact on surrounding communities. Developers will be asked to provide information about noise mitigation, lighting, setbacks, traffic improvements and coordination with local emergency responders.
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Texas sets new rules for data center development