August 7, 2026 – AUSTIN, Texas – In a major development for the state’s rapidly expanding technology infrastructure, Governor Greg Abbott announced that QTS Data Centers has officially committed to complying with Texas’s newly established operational standards and will participate in a comprehensive state audit.
The move highlights a growing push by Texas leadership to balance the surge in digital infrastructure—fueled by artificial intelligence and cloud computing—with the protection of the state’s electric grid, water supply, and residential communities.
Abbott’s Guardrails for Big Tech
The announcement comes following directives issued earlier this summer, in which Governor Abbott instructed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to pause all pending data center interconnection requests until candidates undergo a rigorous audit.
“Let’s be clear: the growth of data centers must not come before the quality of life of Texans,” said Governor Abbott. “I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way. QTS is setting an example of responsible data center development by embracing my standards, and any company that wants to do business in Texas should expect to do the same.”
Under the statewide framework, data center operators seeking grid interconnection must submit detailed compliance plans demonstrating how they will:
- Pay for Infrastructure: Cover full connection and electrical infrastructure costs without shifting burdens onto local families or small businesses.
- Conserve Water: Implement closed-loop cooling or water-reuse procedures to eliminate heavy freshwater draw.
- Reduce Grid Strain: Provide options for on-site power generation or energy demand response during peak utility periods.
- Protect Neighborhoods: Address community impacts through strict noise mitigation, lighting controls, and setbacks.
- Ensure Full Transparency: Disclose all ownership interests and relinquish dependence on outdated, taxpayer-funded municipal incentives.
Where QTS Is Building and Expanding in Texas
QTS Data Centers, one of the nation’s largest data center developers, maintains a significant and growing footprint across key Texas metros. By agreeing to the state’s audit and operational standards, QTS ensures its current operations and multi-million-dollar expansion projects can move forward:
Location / Campus Status & Focus Areas Key Infrastructure & Standards Alignment Irving (Dallas-Fort Worth Metro) Active multi-facility mega-campus Multi-building expansion incorporating water-efficient cooling systems and grid load-management features. Fort Worth (Park Vista Blvd) 53-acre mega-scale campus Designed with an on-site substation, recycled water utilization, and room for up to 200 MW gross campus potential. Wilmer (South Dallas) Major site under active development Master-planned development designed to comply with local setback requirements and self-funded power hookups. San Antonio (Potranco Rd) Enterprise facility serving regional tech & defense Enhanced efficiency standards and water-reuse design.
Industry Response: Compliance vs. Exit
Governor Abbott’s policy line has drawn distinct reactions across the tech sector:
- Diode announced it could not meet the criteria and canceled a proposed data center in Henderson County.
- Amazon and Google both issued statements supporting the standards and committing to collaborate with Texas on grid reliability and resource protection.
- Chevron & Microsoft partnered to build an dedicated power plant in Texas specifically to power a Microsoft facility, cutting off reliance on the ERCOT grid and ensuring full compliance.
With QTS signing on, state officials signal that Texas remains open for major technology investment -provided developers bear the true costs of their utility footprint.
