Texas halts data center permits
Texas Governor Greg Abbott has ordered the Texas Commission on Environmental Quality to halt new data center permits statewide. This pause will last until state agencies complete audits on the impact of data centers on the electric grid and water resources. The governor emphasized that data centers must cover their own costs and protect state resources.
Texas Governor Greg Abbott has directed the Texas Commission on Environmental Quality (TCEQ) to halt the issuance of permits for new data center projects across the state. This moratorium is to remain in effect until the Electric Reliability Council of Texas (ERCOT) and the Texas Water Development Board (TWDB) finalize their respective audits concerning data center impacts.
According to the Governor's office, the Public Utility Commission of Texas (PUCT), ERCOT, and the TWDB require the audit findings to make informed regulatory decisions. Abbott emphasized that "Texans must come first" and that data centers are expected to be self-sufficient, safeguard the power grid and water supplies, and comply with the audits before any new permits are approved.
This directive follows Abbott's earlier actions, including a June order for the PUCT and ERCOT to audit all data center interconnection requests within ERCOT's service area. In September, the TWDB was tasked with compiling a list of data centers and ensuring adherence to water-use reporting requirements, with warnings of potential legal repercussions for non-compliance. The TCEQ is scheduled to provide an update on its compliance with the governor's order by October 19.