Data Foundry wins landmark appeal against City of Austin, TX

April 29, 2021
Ruling concerning Austin Energy’s rate structure gives Texans new rights to challenge excessive and discriminatory rates, contends the colocation data center provider.

Data Foundry, a colocation data center provider with facilities in Austin and Houston, Texas, announced that it has won new rights for businesses and residents to challenge discriminatory rates imposed by municipalities in what the provider called a historic Texas Supreme Court decision against the City of Austin.

As recounted by a Data Foundry statement:

In 2016, Austin Energy, the City of Austin’s municipal power authority conducted a consumer rate review in which Data Foundry participated in. After the rate review completed, new rates were to be imposed beginning January 1, 2017.
Recognizing that the rates were excessive and discriminatory, Data Foundry sued Austin Energy in Texas District Court. After the court ruled that consumers like Data Foundry cannot challenge rates set by municipal utilities and are left to the mercy of the municipality, Data Foundry appealed.
On appeal, Data Foundry convinced the Texas Supreme Court that Texas law guarantees consumers the right to challenge potentially excessive and discriminatory electricity rates in court. In April of 2021, the Texas Supreme Court notified Data Foundry that it had won its appeal against the City of Austin in a landmark decision and is able to proceed with a suit.

“As an industrial-scale buyer of power, and through efficient design and operations of our facilities, Data Foundry ensures customers achieve optimal utilization when they choose our services and facilities,” commented Edward Henigin, CTO of Data Foundry.

He added, “Any unfair electric rate impacts our customers both directly and indirectly, and it’s in our best interest to protect them. We took on this fight to ensure our customers don’t get taken advantage of, to help reduce overall costs, all the while ensuring we can provide the best product at the most competitive prices.”

Providing managed services for enterprise customers in Austin and Houston, Texas, Data Foundry works in a variety of industries including technology, energy, healthcare, financial services, and others. The company's premier data centers are supported by experienced on-site technicians, security staff, and customer support on a 24x7x365 basis.

Regarding the court's ruling, Data Foundry's Henigin continued, “This is why it’s optimal for companies to outsource their digital infrastructure management and services to data center companies like Data Foundry. With digital transformation driving business decisions to adopt more compute infrastructure capabilities such as internet and cloud services, power costs can make or break a business in the process. This win sets a whole new standard."

Henigin concluded, "Data Foundry is bullish on our mission. We know it’s a long road ahead and we’re committed to do what’s right for all Texans.”

For more information, visit or call 1.888.839.2794.

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