Abbott: I have instructed TCEQ to pause the issuance of all permits related to data center projects
Texas Governor Greg Abbott has directed the Texas Commission on Environmental Quality (TCEQ) to immediately pause the issuance of all permits for data center projects. This halt is pending comprehensive audits by the PUC, ERCOT, and TWDB to assess the impact of data centers on the state's electric grid reliability and water resources. The governor also plans to work with the Legislature to eliminate financial incentives and codify new safeguards for data center development.
Texas Governor Greg Abbott issued a directive to the Texas Commission on Environmental Quality (TCEQ) to immediately halt all permits sought by data centers across the state. The order, conveyed in a letter to TCEQ Executive Director Kelly Keel, emphasizes a 'whole-of-government approach' to protect Texans' natural resources and electric grid reliability.
The directive is predicated on ongoing audits by the Public Utility Commission of Texas (PUC), the Electric Reliability Council of Texas (ERCOT), and the Texas Water Development Board (TWDB). These audits aim to thoroughly assess the impact of data centers on the Texas electric grid and the state's water resources. Governor Abbott has also instructed data centers to cover all electrical infrastructure costs, ensure their development leads to lower residential electricity bills, comply with water use reporting requirements, and adhere to setback requirements to protect local communities.
Furthermore, Governor Abbott announced his intention to collaborate with the Texas Legislature to eliminate any financial incentives for data centers and to codify additional safeguards into state law. TCEQ is tasked with aligning its permitting decisions with these directives and is required to provide an update on its compliance by October 19, 2026. Kelly Keel is set to depart her role at TCEQ to become CEO of the Texas Association of Business on October 2.