Texas Energy Agencies Seek Expanded Authority to Regulate Data Centers

The Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) are requesting expanded regulatory authority from state lawmakers to oversee data centers. This push follows a directive from Governor Greg Abbott, who ordered the agencies to ensure that data centers pay for their own electric infrastructure costs to avoid increasing energy bills for Texas residents.

Thomas Gleeson, Chairman of the PUCT, informed the governor that the agencies have already implemented new grid requirements and forecasting processes in accordance with a 2025 state law. To further safeguard the grid, Gleeson is proposing legislation that would require data centers to register with the state and allow regulators to communicate directly with these facilities during energy emergencies. ERCOT is also developing programs to encourage data centers to reduce energy consumption during such crises.

Additionally, Gleeson suggested expanding the Lone Star Infrastructure Protection Act. This proposed expansion would prevent foreign-linked companies from gaining control over critical data center infrastructure, framing the move as a necessary step to balance economic development with grid reliability and resident interests.