Abbott orders temporary halt for all data center permits in Texas

Texas Governor Greg Abbott (R) has issued a directive for a temporary halt on all data center permits within the state, pending the completion of an audit by the state's environmental regulatory agency. This decision, announced Monday, follows a June order by Abbott for an audit of all data center permit applications to the Electric Reliability Council of Texas (ERCOT). The primary goal is to ensure that new data centers do not compromise the state's electric grid, which has experienced failures during severe weather events in recent years.

According to a news release from Governor Abbott's office, data center projects will be required to cover all associated electrical infrastructure costs, contribute to lower residential electricity bills, and successfully pass the ERCOT audit. Furthermore, the directive emphasizes that data centers must not deplete water resources needed by local communities. They are also mandated to report their electricity and water usage, and adhere to setback requirements designed to protect nearby communities.

Last week, Governor Abbott also instructed the Texas Water Development Board to enforce compliance with water-use reporting requirements for data centers. The directive includes imposing legal consequences on any data centers that fail to adhere to state law regarding water usage. The measures underscore a broader state effort to regulate data center development more rigorously in light of resource concerns.