Governor Greg Abbott announced on August 18, 2026, that Power House Data Centers, CoreWeave, and Emergent Data Centers have each committed to comply with the standards and guidelines he established for data center development in Texas.

The announcement marks the latest round of formal corporate pledges following directives Abbott issued earlier this summer to the Public Utilities Commission of Texas and the Electric Reliability Council of Texas governing how data centers must operate in the state.

Abbott's office also noted that one data center that could not comply chose to end its operations before construction even began.

What the Standards Require

Abbott's directives instruct the PUCT and ERCOT to ensure that data centers pay for their own electric infrastructure rather than shifting costs onto Texas families and small businesses. Data centers must also reuse their own water, take steps to reduce electricity costs for Texans more broadly, and refrain from disrupting residential neighborhoods.

Abbott has also directed that data centers eliminate reliance on what he described as outdated taxpayer-funded incentives.

As part of the audit process, PUCT and ERCOT are required to examine each project's disclosure of all taxpayer-funded incentives, grants, abatements, and other public financial assistance tied to it.

Companies must also detail projected electricity demand and any plans for on-site generation or other measures to reduce reliance on the ERCOT grid.

Additional disclosures include identification of water sources, projected water use, water reuse procedures, and water-efficient cooling technologies.

Projects must also outline noise mitigation, light controls, setbacks, traffic improvements, emergency response coordination, and measures to protect neighboring property owners.

Full transparency regarding project ownership and controlling interests is also required. Any company that fails to comply with ERCOT's audit process faces having its approval denied.

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

PowerHouse Data Centers Outlines Specific Commitments

PowerHouse Data Centers, the data center platform of American Real Estate Partners, submitted a letter to Abbott dated August 13, 2026, expressing support for his directives and outlining the company's existing practices.

According to the letter, signed by Co-founder and Chief Executive Officer Douglas Fleit, PowerHouse has already posted financial security collateral and contribution in aid of construction required by ERCOT and Oncor for its Texas projects, in full and on schedule, before any facility has been energized.

The company stated it supports ERCOT's large load interconnection framework and PGRR 145, which require developers to put capital at risk before reserving grid capacity.

On water conservation, PowerHouse stated that its high-efficiency, air-chilled cooling systems are designed to run on outside air for much of the year, and that its closed-loop cooling systems recirculate water multiple times rather than consuming it after a single use.

The company says it exceeds industry efficiency standards for water usage.

The letter also detailed community investments across its Texas projects, including burying overhead power lines, enclosing generators and cooling equipment with sound barriers and acoustic louvers, and screening equipment behind solid masonry or stone walls.

PowerHouse said it has dedicated hundreds of acres for public parks and open recreation spaces under permanent public-access easements and funds long-term road maintenance. The company's active Texas projects include Prairie Ridge in Ellis County and Circle T in the town of Westlake.

CoreWeave Sends Its Own Letter to Abbott

CoreWeave, the AI infrastructure company, also submitted a letter to Abbott outlining its approach to development in Texas.

In a post accompanying the letter on LinkedIn, CoreWeave stated that it funds the infrastructure required to connect its facilities to the grid, uses closed-loop liquid cooling where possible to minimize water draw, and engages with communities before, during, and after development.

The company framed its commitments around the principle that communities that make its operations possible should be able to share in the benefits without shouldering its costs.

CoreWeave stated it is building for the long term in Texas and expressed a desire to work with Abbott, state leaders, and communities across the state.

Emergent Data Centers Also Commit

Emergent Data Centers was named alongside PowerHouse and CoreWeave in Abbott's August 18 announcement as having committed to comply with the state's data center standards and guidelines.

In a letter dated August 17, 2026, Emergent CEO Chris Sumter told Abbott that the company supports the standards and had been developing its San Angelo campus in accordance with them before the guidelines were issued.

Emergent said the San Angelo project is located within city limits and is subject to a conditional use permit, giving the city enforceable oversight of the development.

The company said the project includes water-use caps, closed-loop air cooling without evaporative systems, noise limits, and other local requirements.

The company also committed to paying for infrastructure upgrades associated with its project, including its substation, transmission service, and necessary load upgrades. Emergent said those costs would not be shifted to residential customers or small businesses.

Emergent asked Abbott's office to consider verified municipal oversight as a readiness factor in the state's Batch Zero grid-capacity allocation process, noting that its San Angelo project is the only data center project in Tom Green County subject to enforceable municipal standards.

Abbott Says Guidelines Are Working

Abbott framed the growing number of compliance announcements as evidence that his directives are producing results across the industry.

"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." His office stated that the guidelines are being universally implemented by data centers across the state.

The departure of one unnamed company that chose to end its project rather than comply was cited by Abbott's office as further demonstration that the standards carry real consequences.

Since the directives were issued, his office said, data centers across Texas have either announced full compliance or announced they are ending their projects.