Gov. Abbott blocks data center permits until audits are complete
Governor Greg Abbott has issued a directive halting new data center permits in Texas until audits on water and electricity usage are completed by state agencies. This action affects a proposed Circle T data center complex between Keller and Westlake, which is currently under a temporary restraining order. Abbott also aims to eliminate data center incentives and ensure projects protect the state's resources.
Texas Governor Greg Abbott has issued a new directive stopping the Texas Commission on Environmental Quality (TCEQ) from issuing data center permits. This halt will remain in effect until the Electric Reliability Council of Texas (ERCOT) and the Texas Water Development Board (TWDB) complete audits on data center water and electrical usage, which Governor Abbott had previously ordered. Abbott emphasized that Texans must come first, stating that data centers need to be self-sufficient, protect the state's grid and water, and comply with the audits.
The directive has immediate implications for a contentious data center project in Northeast Tarrant County, specifically the proposed Circle T data center complex. This complex, situated on 87.9 acres zoned for industrial use near the City of Keller and the Town of Westlake, is currently subject to a temporary restraining order. This order prevents the Westlake Town Council from voting on the project. Keller Mayor Ross McMullin expressed support for Abbott's directive, arguing that the proposed data center's proximity (506 feet) to Keller homes raises concerns consistent with the Governor's stance against data centers near residential areas. The City of Keller intends to pursue all available diplomatic and legal avenues to protect its residents.
Officials from the Town of Westlake stated their awareness of the Governor's directive and affirmed their commitment to abiding by his orders. In addition to the permit halt, Governor Abbott has also instructed the TWDB to gather comprehensive water usage information from data centers and other large consumers, directing the board to enforce compliance with the Texas Water Code through penalties for past failures and legal consequences for future non-compliance. Abbott's office requires an update on TCEQ's compliance by October 19, 2026.