Gov. Abbott orders TCEQ to pause environmental permits for data centers until audit is complete
Texas Gov. Greg Abbott has ordered the Texas Commission on Environmental Quality (TCEQ) to pause permits for new data centers until a statewide audit of their energy and water usage is completed. This expands an earlier order that only affected grid connections for larger data centers managed by ERCOT. The audit is being conducted by ERCOT and the Texas Water Development Board and is expected to conclude in December.
Texas Governor Greg Abbott has issued an order instructing the Texas Commission on Environmental Quality (TCEQ) to halt the issuance of permits for all new data center projects across the state. This directive will remain in effect until state regulators finalize a comprehensive audit of these facilities' energy and water consumption.
This latest action represents an escalation of the Governor's previous attempts to address concerns regarding data centers. Earlier in August, Governor Abbott had directed the Electric Reliability Council of Texas (ERCOT) to pause grid connection approvals, but this only applied to data centers requesting at least 75 megawatts of power or those connecting to the ERCOT-managed grid. The new order broadens the scope significantly, impacting all state agencies that grant permits for data center supporting infrastructure, such as water usage or on-site power plants.
ERCOT and the Texas Water Development Board (TWDB) are currently surveying over 400 data centers as part of the audit, with results expected by December. Governor Abbott stated that "Texans must come first" and data centers must "pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits" before TCEQ will issue any further permits. Critics are urging Governor Abbott to convene a special legislative session to pass new laws regarding data centers before the next regular session begins in January.