Texas Governor Halts New Data Center Permits Statewide
Texas Governor Greg Abbott has directed the TCEQ to halt all new data center permits until ERCOT completes an audit of data centers, citing concerns for the state's electric grid and water resources. New requirements mandate data centers cover their own power infrastructure costs, report utility usage, and avoid competing with local communities for water. Additionally, Jacinto City Council is scheduled to discuss a new ordinance with further data center requirements.
Texas Governor Greg Abbott has issued a directive to the Texas Commission on Environmental Quality (TCEQ) to pause the issuance of all new data center permits across the state. This moratorium will remain in effect until the Electric Reliability Council of Texas (ERCOT) finalizes a comprehensive audit of existing data centers.
The Governor's office stated that the primary reasons for this halt are to safeguard Texas's electric grid and preserve its vital water resources. Alongside the permit pause, new stringent requirements have been imposed on data centers. These mandates include covering their own power infrastructure expenses, providing detailed reports on their electricity and water consumption, ensuring they do not deplete water resources crucial for local communities, and successfully completing all required audits.
Governor Abbott emphasized that Texans' interests come first, and no new permits will be granted until these audits are concluded. Separately, Jacinto City Council is slated to convene a special meeting tonight at 6:00 p.m. to deliberate on a proposed ordinance that would introduce additional requirements for data centers within the city.