Compass Datacenters, the Dallas-headquartered data center developer, has issued a public statement in support of Governor Greg Abbott's directive calling for tougher standards governing the data center industry in Texas, declaring that it already operates in compliance with each of the requirements being considered and calling on state authorities to apply those same standards to every developer in the market.

The statement, released on August 10, 2026, positions Compass not as a reluctant subject of increased regulation but as an advocate for it, framing the push for higher standards as an opportunity to separate responsible long-term developers from those the company suggests are merely passing through communities without lasting investment or accountability.

What Abbott's Directive Is Asking

According to Compass, Governor Abbott's directive raises several specific questions about how data center developers operate in Texas.

Those questions center on whether developers pay their own way for grid infrastructure, whether they strengthen rather than strain the electric grid, how responsibly they manage water consumption, whether they protect neighboring residents from noise and other nuisances, and whether they are transparent about their ownership structures.

Compass framed each of these as legitimate and answerable questions, stating that its own operations already address them. The company's public response to each point was unambiguous: "We agree, and we already operate that way." Recently, the Texas governor has halted data center grid connections for an audit.

Grid Infrastructure and Energy Costs

On the question of grid costs, Compass stated that it funds its own grid infrastructure so that expenses are not passed on to Texas residents.

The company said that during periods of grid stress, including storms and unplanned outages, it voluntarily works with grid operators to reduce its load and help keep homes powered.

The company also used the occasion to call for transparency and accountability not only from developers but from utilities themselves, stating that utilities should be expected to complete due diligence and studies of prospective developments in a transparent, thorough, and timely manner.

Compass said it welcomed the opportunity to work alongside utility and transmission partners, the Electric Reliability Council of Texas, and the Public Utility Commission of Texas to build a process that is clear and accountable on all sides.

Water Use: A Closed-Loop Approach

On water consumption, a growing point of public concern around large-scale data center development, Compass said its closed-loop cooling system recycles the same water indefinitely.

The company added that it is committed to using available recycled wastewater for commissioning purposes.

Once a facility is operational, Compass stated, each of its data centers uses roughly the same amount of water per year as two average households.

The company described this approach as consistent with its broader commitment to advanced hybrid cooling that uses no water during operations, a claim it has incorporated into its standard corporate description.

Community Impacts and Nuisance Standards

Compass addressed the question of neighborhood impacts by pointing to practices it said are already embedded in its development process.

These include managing noise levels to fall within or below local ordinances, implementing thoughtful setbacks, ensuring lighting does not create a nuisance for neighboring residents, and adopting construction practices designed to reduce truck traffic in surrounding communities.

The company said that trust is earned before construction starts, through transparency, regular communication, and commitments that residents can see and measure over time.

It called on data center developers broadly to disclose their water use, community commitments, infrastructure funding arrangements, and ownership structures, and stated that Compass already does so.

Financial Standards and Tax Abatements

Compass also addressed what it described as the financial backing and customer base required for a developer to succeed over the long run.

The company said developers should have sufficient financial backing to complete their projects and credit-rated customers to fill them. In a notable declaration, Compass stated that it will not ask for local tax abatements and that it is not dependent upon them.

The statement did not elaborate on the context for this position but appeared to situate it within a broader argument that responsible developers should not place financial burdens on local governments or taxpayers.

Compass is backed by Ontario Teachers' Pension Plan, Brookfield Infrastructure, and KKR.

A Call for a Universal Standard

The core argument running through Compass's statement is that whatever standards Texas chooses to adopt should be applied uniformly across the industry. Chris Crosby, Compass's founder and chief executive officer, made this point explicitly in a recent Fortune opinion piece cited in the release.

"When our elected leaders push for tougher standards for our industry, my response is the same: good, raise them," Crosby wrote.

"Ask for more on water, energy, infrastructure upgrades, community investment, and accountability. Just measure every developer by the same yardstick."

The company said it has operated according to its current standards for fifteen years and described its development philosophy as building every campus as a 100-year asset, one it owns and operates itself rather than developing and selling.

Compass said its position is straightforward: hold every developer and utility to the highest standard, and apply that standard to Compass itself as well.

The company said it looks forward to working with the Texas Legislature, ERCOT, the PUCT, and Governor Abbott's office as Texas defines the future of data center development across the state.