Three more major data center operators have committed to comply with Texas Governor Greg Abbott's standards for data center development, bringing the total number of companies adhering to the governor's framework to what his office describes as universal implementation across the state.

Galaxy, Compass Datacenters, and Montera Infrastructure announced their compliance on August 13, 2026, joining a growing list of companies that have accepted the requirements Abbott established earlier this summer.

The governor's office noted that at least one data center that could not meet the standards chose to end operations before construction even began.

What the Standards Require

Abbott's guidelines were directed at the Public Utilities Commission of Texas and the Electric Reliability Council of Texas, requiring both regulatory bodies to ensure data centers operating in the state meet a range of obligations before projects can move forward.

Chief among the requirements is a prohibition on cost-shifting. Data centers must pay for their own electric infrastructure rather than passing those expenses onto Texas families and small businesses. The standards also require data centers to reuse their own water, reduce the overall cost of electricity for Texans, and avoid disrupting residential neighborhoods.

The governor has also moved to eliminate what he described as reliance on outdated taxpayer-funded incentives, requiring data centers to pay their own way financially.

Abbott framed the standards as a matter of protecting everyday Texans.

"I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way," he said. "They must not pass costs on to Texas families or interfere with their quality of life."

Disclosure and Audit Requirements

Beyond the operational standards, Abbott's directives require data center companies to submit detailed disclosures to the PUCT and ERCOT before any project can proceed.

These disclosures must cover several areas of concern that regulators will audit as part of the review process.

On the financial side, companies must disclose all taxpayer-funded incentives, grants, abatements, and other forms of public financial assistance tied to their projects.

The requirement is designed to give regulators and the public a full picture of how much public money is attached to any given development.

Data centers must also provide detailed projections of their electricity demand and lay out plans for on-site generation or other measures intended to reduce their reliance on the ERCOT grid.

Abbott has emphasized that grid stability and reliability depend on regulators having accurate and complete information from operators.

"The PUCT and ERCOT cannot make decisions to guarantee grid stability and reliability based on substantially incomplete information," Abbott said.

Water use is another area of mandatory disclosure. Companies must identify their water sources, project their total water consumption, describe water reuse procedures, and detail the water-efficient cooling technologies they plan to employ.

Community impact disclosures are also required.

Data centers must outline the specific measures they will take to reduce effects on neighboring property owners, including noise mitigation plans, light controls, building setbacks, traffic improvements, and coordination with local emergency response services.

Finally, companies must provide full transparency regarding project ownership and controlling interests. The governor's office has not elaborated publicly on what specific ownership structures might raise concerns, but the disclosure requirement applies across all projects seeking approval.

Any company that fails to comply with ERCOT's audit process faces having its project approval denied outright.

A Growing List of Compliant Operators

Abbott's office characterized the response from the data center industry as sweeping, describing compliance as universal among operators in the state.

The announcements from Galaxy, Compass Datacenters, and Montera Infrastructure on August 13 follow a pattern the governor's office has highlighted throughout the summer, with companies either affirming their compliance or, in at least one documented case, walking away from a project entirely.

The governor's office did not identify by name the data center company that chose to end its project rather than comply with the standards. It noted only that the operator made the decision to cease operations before construction began.

The governor's office described the framework as commonsense statewide standards aimed at ensuring data center development does not come at the expense of Texas families or communities.

The breadth of compliance claimed by Abbott's office suggests the standards have reshaped the terms under which data centers can operate and expand within the state.

The Role of PUCT and ERCOT

The Public Utilities Commission of Texas and the Electric Reliability Council of Texas sit at the center of the enforcement mechanism Abbott has put in place.

Both bodies are responsible for receiving the required disclosures, conducting audits of that information, and making determinations on whether projects can proceed.

ERCOT, which manages the flow of electricity across most of Texas, has particular relevance given the scale of power demand that large data centers can place on the grid.

The audit process is intended to give ERCOT the data it needs to evaluate each project's potential grid impact before granting any approvals.

The governor's office has not provided a timeline for how long audits are expected to take or detailed how disputes over compliance determinations would be resolved.