Texas bars data centers from raising utility costs for residents

Gov. Abbott is calling on the state's utility regulator to take steps to reduce energy costs for consumers and ensure data center operators pay for any added costs.

1 minute read

June 12, 2026, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Large data center with power substation in Hutto, Texas.

A data center in Hutto, Texas. | Steve Heap / Shutterstock

Texas Gov. Greg Abbott issued directives to the state's Public Utilities Commission to ensure data centers do not pass on infrastructure and energy costs to consumers.

According to an article in The Dallas Express, "The PUC and ERCOT were also instructed to identify additional actions within their authority to protect residential and small-business customers and to submit a joint memorandum to the Office of the Governor by July 17."

The governor and legislature say they are working on proposals to require data centers to contribute to the state's electric capacity, employ water efficiency measures and comply with other requirements such as setbacks and noise limits.

Thursday, June 11, 2026 in The Dallas Express

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