Reversal: Abbott reverses on data center incentives

Gov. Greg Abbott ordered the Public Utility Commission of Texas and the Electric Reliability Council of Texas to shield households and small businesses from costs tied to new data centers. He told the utility regulator to require developers to pay the full cost of any grid equipment their projects need, instead of shifting it to ratepayers. He set two deadlines: a joint set of additional safeguards due to his office by July 17, and regulator action to begin cutting residential transmission charges by July 31.

Abbott also said he will seek legislation to require water‑efficient cooling, mandate accurate reporting of electricity and water use for state planning, phase out or repeal tax breaks including sales‑tax exemptions for data centers, and add siting practices such as setbacks and noise limits. His plan did not propose new local veto power over projects or over A.I. rules, keeping those decisions with the state. Democratic challenger Gina Hinojosa called it a backtrack after years of courting data center and A.I. investment and said the industry should bear its own costs.

AI-synthesized from multiple reported sources