Governor halts all data center permits
Governor Greg Abbott has directed the Texas Commission on Environmental Quality to halt all data center permits until the Electric Reliability Council of Texas and Texas Water Development Board complete audits on their impact on the state's electric grid and water resources. This statewide directive aims to ensure data centers cover their infrastructure costs, protect natural resources, and comply with reporting, with the Governor also planning to eliminate financial incentives.
Texas Governor Greg Abbott has issued a directive to state agencies, mandating an immediate halt to all data center permits until comprehensive audits by the Electric Reliability Council of Texas (ERCOT) and the Texas Water Development Board (TWDB) are finalized. This executive order, issued on Monday, explicitly states that no state agency, including the Texas Commission on Environmental Quality (TCEQ) and the Public Utility Commission of Texas (PUCT), shall proceed with regulatory approvals for data center development until the required information regarding their impact on the state's electric grid and water resources is obtained.
Governor Abbott emphasized that "Texans must come first," asserting that data centers must bear their own costs, safeguard the grid and water supply, and complete the mandated audits. He specifically instructed ERCOT and PUCT to audit all data centers undergoing ERCOT's interconnection process to prevent compromise to grid reliability. Concurrently, TWDB was directed to enforce water-use reporting requirements, impose penalties for non-compliance, and collaborate with ERCOT on water-use audits. The Governor further indicated his intention to work with the Texas Legislature in the upcoming session to eliminate any financial incentives for data centers. TCEQ is required to update the Governor's office on its compliance with this directive by October 19, 2026.