The governor of Texas, a leading state for data centers, wants them to pay their own way

Texas Governor Greg Abbott has directed state utility regulators to ensure that rapidly expanding data centers fully fund the electrical and water infrastructure needed for their operations. The directive aims to protect residential and small business ratepayers from absorbing these infrastructure costs and calls for actions to lower transmission costs by July 2026. Abbott also plans to work with the Texas Legislature to eliminate tax incentives, require water-efficient cooling, and mandate usage reporting for data centers.