Gov. Greg Abbott on Wednesday directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to take immediate action to prevent data center expansion from driving up electricity bills for residential customers, issuing a letter that sets hard deadlines for regulators and previews a legislative agenda for next session.

"Data centers must operate in ways that reduce costs for residential electricity customers, do not drain water needed for our communities, and take into consideration the needs of our neighborhoods," Abbott said.

What Abbott directed In a letter dated today to PUC Chairman Thomas Gleeson and ERCOT CEO Pablo Vegas, Abbott issued three immediate directives: The PUC must take action to ensure data center grid interconnections result in reduced residential electric bills; require data centers to fully fund all electric infrastructure costs tied to their operations so no residential ratepayer bears those costs; and, together with ERCOT, review existing authority to identify steps that can be taken to safeguard Texans, their property, and resources.