The Data Center Coalition, the primary membership organization for the data center industry, has committed to complying with the standards and guidelines established by Texas Governor Greg Abbott for data center development across the state.

The announcement, made August 18, 2026 in Austin, marks a significant moment in the ongoing effort to manage the rapid expansion of digital infrastructure in one of the country's largest energy markets.

Abbott's Standards and What They Require

Earlier this summer, Governor Abbott established what his office described as commonsense statewide standards to ensure data center development does not come at the expense of Texas families or communities.

The directives were aimed at the Public Utilities Commission of Texas and the Electric Reliability Council of Texas, known respectively as the PUCT and ERCOT, instructing both bodies to enforce compliance before any data center projects can move forward.

The standards require data centers to pay for their own electric infrastructure rather than shifting those costs onto Texas families and small businesses.

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for Texans, avoid disrupting residential neighborhoods, and eliminate reliance on what Abbott's office characterized as outdated taxpayer-funded incentives.

Under the framework, the PUCT and ERCOT are directed to require each data center project to disclose all taxpayer-funded incentives, grants, abatements, and other forms of public financial assistance tied to a project.

Projects must also detail projected electricity demand along with plans for on-site generation or other measures to reduce dependence on the ERCOT grid.

Water-related disclosures must include identification of water sources, projected water use, water reuse procedures, and the cooling technologies being employed.

Data center developers are additionally required to outline measures to reduce impacts on neighboring property owners and communities.

Those measures include noise mitigation, light controls, setbacks, traffic improvements, emergency response coordination, and other community protection steps.

Full transparency on project ownership and controlling interests is also mandated. Any data center company that fails to comply with ERCOT's audit process will be subject to having its approval denied, according to the governor's office.

The Coalition's Response

The Data Center Coalition sent a letter to Governor Abbott reaffirming what it described as the data center industry's commitment to a thoughtful approach to responsible digital infrastructure investment and expansion in Texas.

In the letter, the coalition stated that it shares the governor's commitment to protecting residential ratepayers, strengthening grid reliability, and ensuring continued growth is supported by responsible infrastructure planning.

The coalition said it looks forward to continuing to work with state leaders and communities across Texas to support responsible data center development that strengthens the state's economy and protects Texans' quality of life.

Early Signs of Enforcement

Governor Abbott's office noted that since the directives were issued, data centers across the state have either announced full compliance or announced they are ending their data center projects.

One data center that could not comply with the standards chose to end its operations before construction even began, according to the governor's office.

"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." Abbott also emphasized the importance of complete information for regulators, stating that the PUCT and ERCOT cannot make decisions to guarantee grid stability and reliability based on substantially incomplete information.

Regulatory Oversight Going Forward

The PUCT and ERCOT are now positioned as the primary gatekeepers for data center project approvals in Texas, with a mandate to receive and audit disclosure information before projects can advance.

The audit mechanism is central to the governor's framework, and the threat of denied approval for non-compliant projects represents the enforcement mechanism underpinning the entire standards structure.