Governor Greg Abbott announced on August 12, 2026, that three major players in the data center and energy sectors, Core Scientific, Vantage Data Centers, and SB Energy, have committed to comply with the standards and guidelines he established earlier this summer governing how data centers operate in Texas.

The announcements add to a growing list of companies that have either fallen in line with Abbott's directives or abandoned their Texas projects entirely.

What the Standards Require

Abbott's guidelines, issued earlier this summer, directed the Public Utilities Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to enforce a series of requirements before any data center project can move forward in the state.

Under the framework, data centers must pay for their own electric infrastructure rather than shifting costs onto Texas families and small businesses.

They must reuse their own water, reduce the cost of electricity for Texans, avoid disrupting residential neighborhoods, and eliminate reliance on what Abbott described as outdated taxpayer-funded incentives.

The PUCT and ERCOT are also required to examine each data center project in detail. Companies must disclose all taxpayer-funded incentives, grants, abatements, and other forms of public financial assistance connected to their projects.

They must detail projected electricity demand and present plans for on-site generation or other steps to reduce reliance on the ERCOT grid. Water disclosures are also mandatory, including identification of water sources, projected consumption, reuse procedures, and the cooling technologies being employed.

Companies must additionally outline measures to limit impacts on neighboring communities, covering noise mitigation, light controls, setbacks, traffic improvements, and emergency response coordination.

Full transparency about project ownership and controlling interests is also required.

The PUCT and ERCOT must receive and audit all of this information before any project is permitted to proceed. Abbott stated that any data center company that fails to comply with ERCOT's audit process will face denial of its approval.

One Company Walked Away

Abbott's office noted that at least one data center company that could not meet the requirements chose to end its operations before construction even began.

The governor's office did not identify the company by name but cited the departure as evidence that the guardrails are functioning as intended.

"My guidelines and guardrails are working," Abbott said in his August 12 announcement. "They are being universally implemented by data centers across the state."

Core Scientific's Position

Core Scientific, a Nasdaq-listed digital infrastructure company trading under the ticker CORZ, announced its support for Abbott's framework on August 10, two days before the governor's formal announcement.

The Miami-based company, which describes itself as a leader in high-density colocation services primarily serving artificial intelligence workloads, issued a statement emphasizing its commitment to grid resilience, community investment, and transparency.

Chief Executive Officer Adam Sullivan said in the company's statement that data centers are key to supporting America's technology leadership, and that the industry has an important role to play in working constructively with policymakers, utilities, and local communities.

"We believe Texas can continue to lead the country in both energy and technology through thoughtful planning, open engagement, and investment that strengthens the broader infrastructure ecosystem," Sullivan said.

Core Scientific noted it has operated data centers in Texas since 2022 and stated that throughout its operations it has paid its own electric and infrastructure costs, used new cooling technology that results in low water consumption, and engaged with communities on local initiatives.

The company currently operates four facilities in Texas, with additional sites in Alabama, Georgia, Kentucky, North Carolina, North Dakota, and Oklahoma.

SB Energy's Commitment

SB Energy, an energy infrastructure company, was the first of the three to formally communicate its position, delivering a letter directly to Abbott's office on August 7 outlining its support for strengthened transparency and accountability requirements for large electric load projects, including data centers.

The company stated it came to Texas specifically to pay for and deliver the energy infrastructure needed to support continued growth while investing in communities and maintaining grid reliability.

In its statement, SB Energy said it is committed to demonstrating that its projects meet Abbott's standards and described itself as well positioned to support Texas' continued economic growth.

The Broader Industry Backdrop

The commitments from Core Scientific, Vantage Data Centers, and SB Energy come amid rapidly accelerating investment in data center infrastructure across Texas, driven by growing demand for artificial intelligence, advanced computing, and other digital applications.

Texas has emerged as a critical market for this infrastructure buildout, in part because of its deregulated electricity market and available land.

Core Scientific framed the compliance framework as a positive development, arguing that thoughtful standards can help preserve Texas' leadership in technology, energy, and innovation while supporting the infrastructure required for long-term growth.

The company expressed support for what it called a clear and predictable framework for data center development that balances the needs of operators, utilities, and the communities they serve.

Abbott, for his part, has emphasized that the standards are designed to ensure that the costs and consequences of large-scale data center development are not borne by ordinary Texas residents.

"I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way," the governor said.

"They must not pass costs on to Texas families or interfere with their quality of life."