Abbott Says OpenAI Commits to Comply with Texas Data Center Standards

AUSTIN, TX — Gov. Greg Abbott announced Monday that OpenAI will comply with the state's standards and guidelines for data center development.

“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.”

Earlier this summer, Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to implement statewide standards for data center projects.

Under the governor's directives, data centers must pay for their own electric infrastructure, reuse water when possible, reduce electricity costs for Texans, avoid disrupting residential neighborhoods and eliminate reliance on taxpayer-funded incentives.

The governor also directed the PUCT and ERCOT to require developers to disclose taxpayer-funded incentives, projected electricity demand, plans for on-site power generation, water use and conservation measures, project ownership and steps to reduce impacts on surrounding communities, including noise, lighting, traffic and emergency response.

According to Abbott, the PUCT and ERCOT must receive and audit the required information before a data center project can move forward.

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

Abbott said data center companies that fail to comply with ERCOT's audit process could have their project approvals denied.

The governor's office said that since the standards were announced earlier this year, data center developers have either agreed to comply with the requirements or announced plans to end their proposed projects.