Abbott puts the brakes on data center permits
Gov. Greg Abbott ordered the Texas Commission on Environmental Quality to stop issuing permits for data centers until state officials complete reviews of their potential effects on the electric grid and water supplies. The directive could delay projects in Caldwell County, including developments by Tract, Prime Data Centers and Edged Energy, but does not automatically cancel them.
Gov. Greg Abbott directed the Texas Commission on Environmental Quality to pause data center-related permits while the Public Utility Commission of Texas, the Electric Reliability Council of Texas and the Texas Water Development Board assess projects’ effects on grid reliability, electricity costs and water resources. The state is also requiring large-load developers to provide information about ownership, incentives, expected power use, onsite generation, water supplies and community impacts. Abbott said data centers should pay for the infrastructure needed to serve them and protect Texas’ electric grid and water resources.
The directive has particular significance in Caldwell County, where Tract is planning the Caldwell Valley Technology Park north of Lockhart, Prime Data Centers has registered plans for two buildings on Bob White Road, and Edged Energy is developing a large campus near Maxwell. The order does not automatically terminate those projects; its effect will depend on which approvals they have already received and which remain pending. County officials have limited regulatory authority, while TCEQ controls key environmental permits involving generators, onsite power and water use. Caldwell County’s agreements with Edged require closed-loop cooling using a limited amount of non-potable water, and Abbott has indicated he wants future legislation addressing water efficiency, energy and water reporting, setbacks, noise and data center incentives.