Texas Scorecard by Sydnie Henry June 10, 2026
While touting Texas’ economic growth, Abbott warns that rapid data center expansion cannot come at the expense of Texans.Gov. Greg Abbott is directing state regulators to ensure Texans are not stuck paying for expensive grid upgrades tied to the rapid expansion of data centers.
In a letter to Public Utility Commission of Texas Chairman Thomas Gleeson and ERCOT CEO Pablo Vegas, Abbott warns that fast-growing data center development must not burden Texans with infrastructure costs or higher residential bills.
Since Texas’ economic boom has made the state a magnet for data centers, Abbott insisted new oversight is needed to “ensure that as data centers interconnect to the ERCOT grid, residential electric bills are not negatively affected.”
Abbott directed PUCT to take action so that data center interconnections “result in reduced residential electrical bills” and to require data centers to pay “all of their electric infrastructure costs,” preventing those costs from being shifted onto residential ratepayers.
While large data centers already pay part of their interconnection and grid costs, Abbott’s order presses regulators to shift as much of that burden as possible off residential ratepayers and onto the facilities themselves.
More:
https://texasscorecard.com/state/abbott-directs-regulators-to-make-data-centers-pay-their-own-infrastructure-costs/
