TCEQ directed to halt data center permits
Governor Greg Abbott has extended a freeze on data center permits in Texas, affecting about 77 proposed projects. This directive orders the state's utility and environmental agencies to audit data centers seeking 75MW or greater connections to ensure grid reliability and water-use compliance. The permit halt introduces significant uncertainty and potential delays for these projects.
Gov. Greg Abbott has extended a statewide freeze on permits for data centers in Texas, impacting approximately 77 proposed projects. The directive mandates that the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT) conduct an audit of data centers seeking approval for 75 megawatts or greater and requesting ERCOT transmission system interconnections. This audit aims to assess the projects' impact on the electric grid's reliability.
Additionally, Governor Abbott has instructed the Texas Commission on Environmental Quality (TCEQ) to halt permit approvals until the audit's completion. The Texas Water Development Board is also tasked with ensuring data centers comply with water-use reporting requirements and collaborating with ERCOT on the audit to gather more water-use data.
According to East Daley Analytics, 162 proposed Texas data centers totaling 102 gigawatts are being tracked, with 77 projects, representing 46 gigawatts of load, directly affected by this audit. These projects now face an increased risk of delayed in-service dates, with potential further postponements if the audit extends beyond a few months or year-end. TCEQ is required to report on its compliance by October 19.