Greg Abbott Orders Pause on Texas Data Center Permits
Texas Governor Greg Abbott has directed the Texas Commission on Environmental Quality (TCEQ) to halt all data center permits statewide. This order is in effect until the Electric Reliability Council of Texas (ERCOT) completes an audit. The audit will gather information on power consumption, water use, and other project impacts from developers.
Texas Governor Greg Abbott has issued a directive to the Texas Commission on Environmental Quality (TCEQ) to halt the issuance of all permits for data center projects across the state. The order, announced Monday, mandates a pause until the Electric Reliability Council of Texas (ERCOT), in conjunction with the Public Utility Commission of Texas (PUC) and the Texas Water Development Board (TWDB), completes a comprehensive audit.
The audit requires developers with pending projects to disclose critical information, including whether they plan to generate their own electricity or rely on the Texas grid. It will also collect data on projected power consumption, water usage, the impacts of cooling technology on local neighborhoods such as noise, lighting, and traffic, emergency coordination plans, details on tax incentives and subsidies, and the ownership structure of each project.
Governor Abbott has stipulated that once the audits are completed, the TCEQ must only approve data centers that comply with his directives. The TCEQ is ordered to provide an update on its permitting decisions by October 19. Furthermore, Governor Abbott stated that the next legislative session would focus on eliminating financial incentives for data centers.