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Texas regulators search extra authority from governor, lawmakers to answer information middle inflow

July 29, 2026
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A data center houses a server rack with supercomputer hardware.
An information middle homes a server rack with supercomputer {hardware}. Credit score: Shutterstock / Nomad_Soul

Texas power regulators despatched a letter to Gov. Greg Abbott asking for extra authority to supervise information facilities because the proliferation of the large laptop facilities spikes energy demand within the state.

The letter from the Public Utility Fee of Texas got here in response to a June directive from Abbott to the fee and the Electrical Reliability Council of Texas (ERCOT), which ordered each to reduce information facilities’ impacts on prospects of residential utilities.

In its July 17 letter, the PUCT supplied solutions for creating legal guidelines through the upcoming ninetieth Session of the Texas Legislature to rein in information middle improvement. Texas is experiencing one of many largest information middle booms within the nation, and demand is just anticipated to develop.

PUCT Chairman Thomas Gleeson mentioned the PUCT and ERCOT have already adopted insurance policies to arrange for the inflow of the large facilities. The PUCT is also working to make sure present energy crops proceed to supply power to on a regular basis Texans, even when these services are also suppling energy to new information facilities.

Nevertheless, Gleeson mentioned his company and ERCOT want further assist from lawmakers. He’s requesting laws that will permit it to speak instantly with information facilities and urge them to chop again on power consumption forward of state emergencies.

Underneath present state legislation, ERCOT — the operator of the state’s energy grid — should as an alternative talk with information facilities’ utility firms if energy utilization should be decreased on account of an emergency.

The PUCT additionally requested for clarification about its authority to manage finish customers in a means it hasn’t needed to earlier than.

“With a couple of restricted exceptions, the PUCT has not traditionally regulated the actions of finish use prospects,” Gleeson wrote. “Till lately, particular person shoppers haven’t represented a danger to the dependable operation of the ERCOT transmission system. The fast inflow of huge hundreds — particularly, giant computational hundreds — has modified that danger profile.”

Knowledge facilities must also be required to register with the state, Gleeson argued.

Gleeson additionally argued that giant computational load prospects ought to register with ERCOT. This information would allow the operator “to reliably function and plan the ability grid,” he added.

Additional, Gleeson mentioned information facilities needs to be required to adjust to an present Texas legislation that prohibits sure foreign-linked firms from having “direct or distant entry to, or management over, Texas important infrastructure.” That legislation, often called the Lone Star Infrastructure Safety Act, at present solely applies to energy crops and transmission firms.

Abbott’s June directive additionally required information facilities to pay for the prices of their electrical infrastructure, to which Gleeson responded that the PUCT is “requiring giant shoppers of electrical energy to pay upfront the direct prices to interconnect their services and start paying transmission prices as quickly as capability turns into accessible, even when they haven’t energized.”

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Texas regulators seek more authority from governor, lawmakers to respond to data center influx

Vitality regulators say they don’t have the authority to ask information facilities to scale back energy consumption forward of state emergencies.



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