Texas Gov. Greg Abbott announced Friday that Amazon, Lancium, and Cipher Digital have agreed to comply with the state\u2019s new data center standards, while a separate announcement the same day added Stack Infrastructure, Anthropic, and Nightpeak Energy to the list.<\/p>\n
The developments also come days after The Dallas Express reported<\/a> that a growing number of major operators \u2014 including OpenAI, Oracle, Meta, QTS, and others \u2014 had already committed to the governor\u2019s standards.<\/p>\n Six More Companies Commit<\/p>\n According to the Office of the Texas Governor, Abbott announced<\/a> Friday that Amazon<\/a>, Lancium<\/a>, and Cipher Digital<\/a> will comply with the standards and guidelines established for Texas data centers.<\/p>\n In a separate announcement issued the same day, Abbott said Stack Infrastructure<\/a>, Anthropic<\/a>, and Nightpeak Energy<\/a> also agreed<\/a> to comply.<\/p>\n The governor\u2019s office said the standards\u2014established through June 2026 directives to the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) and reinforced by an early-August audit order\u2014require data centers to address electricity infrastructure, water use, neighborhood impacts, and public incentives before projects can move forward. Full statutory codification of several elements is planned for the next legislative session.<\/p>\n \u201cI established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way,\u201d Abbott said<\/a>. \u201cThey must not pass costs on to Texas families or interfere with their quality of life.\u201d<\/p>\n The announcements are part of a series of commitments announced by Abbott\u2019s office throughout August.<\/p>\n What Abbott\u2019s Standards Require<\/p>\n Abbott\u2019s standards focus heavily on preventing large data centers from transferring infrastructure costs to other electricity customers.<\/p>\n As The Dallas Express reported<\/a> in June, Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to require data centers to pay the costs of electric infrastructure needed to serve their operations.<\/p>\n In his June directive<\/a>, Abbott said data centers should operate in ways that reduce costs for residential electricity customers, protect water resources, and account for nearby neighborhoods.<\/p>\n The current review process requires companies to provide information about projected electricity demand and plans for on-site generation or other measures designed to reduce reliance on the ERCOT grid.<\/p>\n Companies must also disclose<\/a> taxpayer-funded incentives, grants, tax abatements, and other public financial assistance tied to their projects.<\/p>\n Water and Neighborhood Impacts Are Also Part of the Review<\/p>\n Water use is another major component of the new standards.<\/p>\n According to Abbott\u2019s office, data center proposals must<\/a> identify their water sources, projected water consumption, water-reuse procedures, and water-efficient cooling technologies.<\/p>\n Projects also must outline measures to reduce effects on neighboring property owners and communities. Those measures can include noise mitigation, lighting controls, setbacks, traffic improvements, and emergency-response coordination.<\/p>\n The requirements come as communities across Texas have debated whether large data centers are compatible with residential areas.<\/p>\n In July, for example, The Dallas Express reported that North Richland Hills Mayor Jack McCarty opposed<\/a> placing data centers near homes. The city had adopted specific data center regulations in 2025, including requirements concerning cooling and power equipment, and a potential 100-foot setback from residential property under certain circumstances.<\/p>\n Rural Texas Has Become a Flashpoint<\/p>\n The statewide standards also follow growing concern over large projects proposed outside major metropolitan areas.<\/p>\n In March, The Dallas Express reported<\/a> that State Rep. Helen Kerwin urged Abbott to consider an immediate pause on new large-scale data center development in rural communities. Kerwin cited constituent concerns about water resources and electricity availability.<\/p>\n By July, Abbott himself was publicly calling for a prohibition on new AI data centers in rural Texas neighborhoods and arguing that developers should bring their own money, power, and water. (This remains a stated policy position rather than enacted law.)<\/p>\n \u201cPushing back on these AI data centers that are trying to build in our neighborhoods. I\u2019ve made it clear already, any AI data center thinking about coming here, they have to bring their own money, bring their own power, use their own water, and do it in a way that reduces the cost of electricity for residents across our state. We must prohibit them from building AI data centers in rural Texas neighborhoods. We must eliminate the tax break they are getting,\u201d Abbott said<\/a>.<\/p>\n The governor\u2019s position represents a tougher approach than his earlier promotion of Texas as a major destination for AI infrastructure.<\/p>\n Texas Still Wants the AI Investment<\/p>\n Despite the new requirements, Texas continues to pursue major data center and artificial intelligence investments.<\/p>\n The Dallas Express reported in February that Texas could<\/a> overtake Northern Virginia as the world\u2019s largest data center market by 2030, citing JLL\u2019s North America Data Center Report. The report identified Texas as a leading frontier market as AI infrastructure construction accelerates.<\/p>\n