Why Texas Is Making Data Centers Wait

The state of Texas is imposing new regulations on data centers, which are causing delays in the construction of new facilities. The Texas Public Utility Commission (PUUC) has implemented new rules requiring data centers to obtain a certificate of convenience and necessity (CCN) before construction can begin. This certificate is typically required for utilities and other infrastructure projects, but is new for data centers. The new rules are intended to ensure that data centers are not built in areas that could be impacted by future transmission line projects. The rules also require data centers to provide detailed information about their plans, including their energy usage and cooling systems. This is causing delays in the construction of new data centers in Texas, as companies are waiting for approval from the PUC. The delays are affecting companies such as Google, Meta, and Microsoft, which are planning to build new data centers in the state. The PUC is also considering further regulations, including a fee structure for data centers to help fund the state's grid and infrastructure.