Abbott orders TCEQ to halt Texas data center permits
Governor Greg Abbott ordered the Texas Commission on Environmental Quality (TCEQ) to halt all data center permits in the state. This pause is in effect until ERCOT and TWDB complete audits on grid reliability, electricity costs, and water resource impacts. The directive mandates that data centers cover their own infrastructure costs, protect natural resources, and comply with reporting requirements.
Governor Greg Abbott has issued a directive to the Texas Commission on Environmental Quality (TCEQ), ordering an immediate halt to all data center permits. This moratorium will remain in effect until the Electric Reliability Council of Texas (ERCOT) and the Texas Water Development Board (TWDB) complete comprehensive audits. The Public Utility Commission of Texas (PUCT) is also involved, with all state agencies prohibited from moving forward with regulatory approvals for data center development until these audits are finished.
Governor Abbott emphasized that "Texans must come first," stating that data centers must be self-sufficient, safeguard the state's power grid and water supplies, and comply with the required audits. He has instructed the PUCT and ERCOT to scrutinize all data centers currently in ERCOT's interconnection process to prevent any compromise to grid reliability or strain on Texas's natural resources. Additionally, he directed the TWDB on September 14 to enforce water-use reporting requirements for data centers, apply legal repercussions for non-compliance, and collaborate with ERCOT on the water audit.
The directive mandates that data center projects bear all electrical infrastructure costs, contribute to lower residential electricity bills, and avoid using water vital for local communities. They must also report their electricity and water usage and adhere to setback requirements to protect surrounding areas. The TCEQ is required to align its permitting decisions with these directives and provide a compliance update by October 19, 2026. Governor Abbott also plans to work with the Legislature in the next session to eliminate any financial incentives for data centers.