Texas Gov. Abbott orders data center permit halt weeks after issuing moratorium

Texas Governor Greg Abbott has directed the Texas Commission on Environmental Quality (TCEQ), the state's environmental regulator, to halt all data center-related permits. This order will remain in effect until the Electric Reliability Council of Texas (ERCOT) completes an audit of existing data center waitlists for grid connections.

This new directive builds upon an August order from the governor's office which imposed a moratorium on new data center grid approvals, effectively expanding the pause to include environmental permits. The move comes as data center expansion has become a contentious political issue ahead of the 2026 midterm elections, with recent polls indicating public skepticism toward local data center development.

Governor Abbott, who had previously promoted Texas as a future hub for AI development, citing sales tax exemptions and projects like OpenAI's Stargate, now faces pressure to alter his stance. A press release associated with the moratorium indicated that Governor Abbott intends to collaborate with the Texas Legislature in the upcoming session to eliminate financial incentives for data centers. The TCEQ is expected to provide an update on its compliance with the governor's order by October 19.