I’m going to quote a largish chunk here just so I can tag the various companies.
In June, Abbott directed the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to require data centers to pay for their own electric infrastructure costs, scuttling at least one project planned for East Texas.
Then, earlier this month, Abbott asked these agencies to audit all data center projects in the process of connecting to the Texas grid. According to his directive, data centers in the pipeline must provide and verify information about their water usage; their noise, light, and traffic mitigation efforts; how they plan to obtain electricity; whether they receive taxpayer money; and the real identities of their owners.
A flurry of affirmative replies ensued, including assurances from some of the best-funded users and most prolific developers of data centers in the world.
Many of these companies have already made use of a sales tax exemption for data center equipment — a 13-year-old state law passed before the remote work boom of the COVID-19 pandemic and the rise of generative artificial intelligence (AI) this decade propelled the industry well past the state’s expectations.
Here are the data center companies that have agreed to comply with Abbott’s standards, cross-referenced with the state’s list of companies that benefit from the tax break.
QTS Data Centers
On August 6, Virginia-based Quality Technology Services (QTS) “applauded” Abbott’s “efforts to increase transparency on power use, water and resource consumption, and community considerations associated with data center development.”
QTS data centers built after 2019 use fans rather than water for cooling, according to the company.
The company operates three facilities in Texas and has three more in the pipeline, according to its website. The Texas Comptroller of Public Accounts certified one QTS facility, a 56-acre campus in Irving, to benefit from the state sales tax exemption.
Vantage Data Centers
Vantage Data Centers sent a letter of support to Abbott on August 7.
The company, based in Denver, Colorado, only lists one active data center in Texas, at an undisclosed location in Shackelford County. However, it has secured a sales tax exemption for 12 projects listed by the comptroller, all for Oracle.
Skybox
Texas-based Skybox Datacenters agreed to Abbott’s standards on August 7.
The company has built nine data centers around the state. Besides one in Wichita Falls, all are in the Dallas, Austin, and Houston metropolitan areas, according to its website. The comptroller’s list of qualifying data centers doesn’t include a project with Skybox in the name or one associated with its address at 3131 Turtle Creek Boulevard in Dallas, based on a search of the state’s franchise tax database.
Digital Realty
Digital Realty stated on August 7 that it would comply with Abbott’s standards. The Austin-based company claimed in its statement to be “the world’s largest cloud- and carrier-neutral data center platform.”
Digital Realty operates more than 300 data centers that serve companies including Microsoft, Amazon Web Services, Nvidia and IBM. Twelve of its 14 Texas data centers are in the Dallas area, its website shows.
Stream Data Centers
Dallas-based Stream Data Centers agreed to Abbott’s standards on August 7.
Altogether, nine Stream data centers are either active or in development across Texas, with one on the outskirts of Houston, three in San Antonio, one in Austin, and four in the Dallas area.
Mara
Mara agreed to abide by Abbott’s standards on August 7.
The Florida-based company operates a Bitcoin mining fleet, and it “colocates data centers with power sources to convert stranded energy into digital capital,” its website states.
The company name doesn’t appear on the comptroller’s list of qualifying data centers, nor do any subsidiary companies registered under the address of its Florida headquarters.
Rowan
Rowan Digital Infrastructure, another developer based in Denver, issued a press release in support of Abbott’s orders on August 7.
The company owns and operates four data centers in Texas that benefit from the sales tax exemption, including one in Temple for Meta and another in Cinco for Google.
Meta
Meta, the California-based parent company of Facebook, pledged to comply with Abbott’s standards on Monday.
Meta’s three Texas data centers are in Fort Worth, Temple, and El Paso, according to its map.
Multiple data centers owned or used by Meta benefit from the state’s sales tax exemption. One subsidiary company, Polmer LLC, owns the certified data center in Temple and occupies two other data centers on the comptroller’s list of certified projects. The El Paso facility is owned by a Meta subsidiary, Wurldwide LLC, which also makes use of the exemption.
OpenAI and Oracle
California-based company OpenAI, which created ChatGPT, agreed to comply with Abbott’s standards on Monday. Oracle, also based in California, made the same commitment on Tuesday.
OpenAI is collaborating with Oracle and SoftBank on Stargate, a $500 billion AI infrastructure project based in Abilene and funded in part by chipmaker Nvidia. Lancium, a company backed by New York-based investment firm Blackstone, is constructing the facility, according to its website.
Eleven Lancium data centers and projects appear on the comptroller’s list, spanning Fort Stockton, Turkey, Childress, and Abilene. Seven projects in Abilene are associated with Stargate, with Oracle listed as an occupant.
Core Scientific
Core Scientific issued a press release in support of Abbott’s directives on Monday.
The company, based in Miami, Florida, operates three data centers in Texas: one in Austin, one in Denton, and one in the Callahan County town of Cottonwood, according to its website.
All three benefit from the state tax exemption, the comptroller’s list shows.
Google
The California-based Big Tech titan expressed support for Abbott’s standards on Monday.
The comptroller lists Google as the owner or user of nine data centers that benefit from the sales tax exemption.
CleanSpark
Data center developer CleanSpark Inc. agreed with Abbott’s standards on Monday.
The Nevada-based company doesn’t publish a comprehensive map or list of its data center locations, but as of February, it owned two plots of land in Brazoria County and Austin County with plans to develop facilities there, according to an investor relations press release.
Neither CleanSpark nor the only Texas entity registered to its corporate address, Eagles Nest 138 LLC, appear on the comptroller’s list of data centers.
EdgeConneX
Virginia-based EdgeConneX announced support for Abbott’s standards in its Tuesday press release.
The company doesn’t specify how many discrete data centers it operates in Texas, but it’s only active in the Houston and Austin areas, according to its online map.
The state has certified two EdgeConnex projects for the tax exemption, both in the Austin area.
SB Energy
SB Energy sent Abbott a letter on August 6 expressing support for his directives and publicized it on Tuesday.
The Redwood City, California-based company is building a facility in Milam County in support of Stargate, with Orion listed as an occupant on two projects that benefit from the state sales tax exemption.
Data Center Coalition
The Data Center Coalition, a trade association that represents data center companies, expressed support for Abbott’s directives on Tuesday.