Cipher Digital (NASDAQ: CIFR), a data center developer and operator, said it supports Texas Governor Greg Abbott's call for a comprehensive audit of data center projects seeking to connect to the state's power grid.

The Austin-based company said it has already responded to a water consumption survey issued by the Public Utility Commission of Texas, which was referenced in Governor Abbott's directive. Cipher Digital operates and is developing multiple campuses across West and Central Texas.

As part of its stated commitments, the company said it pays for grid interconnection costs, will curtail load during ERCOT grid emergencies in accordance with Senate Bill 6, and supports annual third-party audits of water consumption. The company also said it uses only treated brackish, non-potable water for cooling its facilities.

"Texas built the most competitive energy market in the country, and now it needs to build digital infrastructure the right way by strengthening grid reliability, protecting ratepayers, and focusing on developers that want to be a genuine partner to the communities that host us," said Tyler Page, Chief Executive Officer of Cipher Digital.

The company also said it supports ambient noise studies conducted throughout the lifecycle of its data centers and works with neighboring landowners to address concerns.