Abbott Orders Protections to Keep Data Center Costs Off Texas Homeowners

Governor Greg Abbott is directing Texas energy regulators to protect residential customers from costs tied to expanding data centers. Abbott says the Public Utility Commission and ERCOT must ensure large data centers fully cover the cost of their needed electric infrastructure instead of passing costs on to homeowners. The governor also raised concerns about water use, neighborhood impact, and rising power demand. State regulators have been ordered to recommend additional protections by mid‑July. Abbott also says he plans to work with lawmakers on future rules involving water efficiency, noise reduction, and reporting requirements for data centers. The move comes as Texas communities continue seeing increased interest from large technology and AI facilities.