data demands

Meta and OpenAI agree to follow Texas’ new standards for data centers

Meta's El Paso data center. Image via atmeta.com

Meta Platforms, the parent company of Facebook and Instagram; OpenAI, the owner of ChatGPT; and other tech companies have agreed to follow Texas’ new standards for the development of data centers.

As Texas politicians respond to communities’ increased pushback against power- and water-dependent data centers, Gov. Greg Abbott recently established guidelines for data center projects. President Trump and Gina Jinojosa, a Democrat who will oppose Abbott in the November election, have leveled criticism about the new rules.

Abbott recently directed the Public Utility Commission of Texas and Electric Reliability Council of Texas (ERCOT) to ensure data centers:

  • Pay for their electrical infrastructure instead of shifting costs to families and small businesses
  • Reuse their own water
  • Reduce the cost of electricity for Texans
  • Prevent disruption to residential neighborhoods
  • Eliminate reliance on taxpayer-funded financial incentives

Abbott and Trump differ over data center ‘guardrails’

After releasing the guidelines, Abbott put a moratorium on new data centers in the state.

Abbott directed the Public Utility Commission and ERCOT to audit all data center projects going through ERCOT’s approval process for connecting to the state’s power grid. The two agencies must complete their review before a data center project can join the grid. Any project that fails to comply with the agencies’ requirements won’t be permitted access to the grid.

“I established clear guardrails to ensure data centers protect our electric grid, conserve our water, respect our neighborhoods, and pay their own way,” Abbott, who’s running for a fourth consecutive term as governor, said in a news release. “They must not pass costs on to Texas families or interfere with their quality of life.”

Abbott has hailed Texas as “the epicenter of AI development.”

In a recent interview with Punchbowl News, President Trump questioned the data center rules imposed by Abbott, a fellow Republican.

“I saw Texas the other day sort of is against data centers,” Trump said. “I think it’s a mistake. And I’m not taking positions, I just think it’s a mistake, because there are other communities that want it. When a community wants it, it means a lot of money is going to come into that community.”

In a statement, Gina Hinojosa, the Democratic nominee for Texas governor, stresses that the governor’s data center standards don’t wield the same power that laws would.

“We need a moratorium on data centers until the legislature can meet to put in place real protections so Texans can have a seat at the table to decide if and how data centers come into their communities,” Hinojosa said. “When the companies being regulated are cheering for the rules, you know the rules were written for them, not for Texans.”

The Texas Tribune has identified at least 248 planned data centers in the state, with perhaps hundreds more that aren’t as far along in the development process. At least 355 data centers already operate in Texas. The majority of the new data centers will help power AI software and services.

Meta promises it will be ‘paying our own way‘

In a blog post, Meta commends Abbott’s data center initiative. Meta and investment manager BlackRock are investing more than $10 billion to build a data center campus in El Paso. The 12-building campus, expected to go online in 2028, will be capable of delivering 1 gigawatt of computing power to support Meta’s AI technology.

BlackRock will own 80 percent of the project, and Meta will own the remaining 20 percent.

Meta’s two other Texas data centers are in Fort Worth and Temple.

“Whether it’s creating jobs, growing opportunities for local businesses, or improving energy and water infrastructure, we’re committed to strengthening communities and paying our own way,” Meta says of Abbott’s directive.

OpenAI commits to helping Texas maintain AI leadership

In an Aug. 7 letter to Abbott, OpenAI says it, too, will follow Texas’ data center standards. In fact, the company says the standards reflect practices it already applies to data center projects.

“Texas has built a strong environment for innovation, energy, and economic growth,” the company says. “OpenAI wants to help Texas remain a national leader in AI while demonstrating that this growth can be responsible, reliable, and beneficial to Texans.”

OpenAI is building a $470 million data center in Milam County, and last year it launched operations at a data center campus in Abilene as part of its $500 billion Stargate initiative with Oracle and SoftBank.

Abbott’s office also announced Aug. 11 that EdgeConneX and Stream Data Centers have also pledged to comply with the regulations. Read more here.

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A View From HETI

Casimir’s semiconductor chips can generate power from quantum vacuum fields without the need for batteries or charging. Photo via casimir.inc

Houston-based quantum energy technology startup Casimir Inc. has been awarded an STTR Phase I contract from the U.S. Space Force's SpaceWERX to support the development of the company's solid-state generator for potential use by the Department of the Air Force.

SpaceWERX is the innovation arm of the U.S. Space Force and a division within AFWERX, the incubator and innovation arm of the United States Department of the Air Force. The Air Force Research Laboratory and SpaceWERX, along with many other government agencies, help support innovation through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants and contracts.

As part of the new contract, Casimir will work to refine a fully independent generator. Casimir’s solid-state power technology could support national security missions by providing reliable power even in difficult-to-service environments.

In May, Casimir emerged from stealth, netting a $12 million seed round to commercialize its quantum energy chip. The semiconductor chips can generate power from quantum vacuum fields without the need for batteries or charging. The company aims to include the chips in large-scale energy systems that can power homes, commercial infrastructure and electric vehicles.

“This STTR funds some analysis work to address our proposed scaling approach of making our chips multi-layer to increase aggregate power,” Harold “Sonny” White, founder and CEO of Casimir, tells Energy Capital.

White adds that the company will work with Texas A&M to develop chip planarization techniques to support Casimir’s plans to scale. Additionally, White says the company is working with the U.S. Space Force to explore more applications for its technology.

“Casimir’s technology brings a new capability to the market in the form of our persistent power chips,” White adds. “This approach will be relevant to ultra-low-power electronics, and with the scaling approach we are developing, connected with the STTR work, will eventually be relevant to consumer electronics and beyond.”

Casimir has previously reported that it plans to commercialize its first-generation MicroSparc chip by 2028. The chips are expected to power devices for years without the need for replacements.

The total funding for this project has not yet been disclosed.

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