Abbott orders halt to Texas data center permits pending grid, water audits
Gov. Greg Abbott has ordered a halt to data center permits in Texas, instructing the Texas Commission on Environmental Quality (TCEQ) to pause approvals until audits by ERCOT, PUCT, and the Texas Water Development Board are complete. The audits will assess the impact of data centers on the state's electric grid and water resources. Abbott emphasized that data centers must cover their own infrastructure costs, report usage, and not impact local water supplies.
Texas Governor Greg Abbott has directed state regulators, specifically the Texas Commission on Environmental Quality (TCEQ), to cease issuing permits for data center projects. This directive is in effect until comprehensive audits by the Electric Reliability Council of Texas (ERCOT), the Public Utility Commission of Texas (PUCT), and the Texas Water Development Board (TWDB) are completed.
The audits aim to evaluate the impact of the data center industry on the state's electric grid reliability and water resources. Governor Abbott stated that data centers must bear their own electrical infrastructure costs, accurately report their electricity and water consumption, and ensure they do not deplete water essential for local communities. TCEQ has been instructed to align its permitting decisions with the findings of these audits and is expected to provide an update to the governor's office by October 19.
Furthermore, Abbott indicated his intention to collaborate with state lawmakers during the upcoming legislative session to eliminate financial incentives currently offered to data center developments in Texas. The governor's office emphasized that "Texans must come first" in these considerations.