Meta Agrees to New Texas Data Center Standards

Governor Greg Abbott announced on August 11, 2026, that Meta has agreed to comply with new state standards for large data centers. These regulations require developers to pay for their own electric infrastructure, reuse water, and disclose taxpayer-funded incentives to prevent costs from shifting to residential customers.

Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to audit proposed projects to ensure grid stability and reliability. The governor stated that he established these guardrails to ensure data centers protect the electric grid, conserve water, and respect local neighborhoods.

The agreement creates uncertainty for a Meta data center currently under construction in Northeast El Paso. This facility operates outside the ERCOT grid and utilizes existing city and county economic development incentives. While Abbott indicated the standards apply to all projects under PUCT regulation, it is unclear if Meta must relinquish its El Paso incentives to remain compliant. The City of El Paso stated the announcement does not currently change its existing agreement with Wurldwide, the entity tied to the Meta project.