Thank you for the opportunity to comment on this important issue. The Cato Institute is a nonpartisan public policy research organization dedicated to the principles of individual liberty, limited government, free markets, and peace. At Cato, my research focuses on the role of free markets in improving the availability and affordability of energy and natural resources.

Texas leads the nation in data center growth, with hundreds of facilities operating, under construction, or planned. This means significant economic benefits, including large capital investments, local tax base expansion, and high-paying jobs in construction, operations, and across supply chains supporting manufacturing, energy infrastructure, and telecommunications.

One issue raised by this growth, however, is ensuring that data centers have access to abundant electricity. Consumer-Regulated Electricity (CRE) is one framework that can help address this challenge while keeping the broader grid reliable and affordable. CRE is a novel approach approved by the American Legislative Exchange Council earlier this year. Crucially, CRE would streamline the rapid construction of new data centers without impacting reliability or cost for Texans.