Gov. Greg Abbott issues permit moratorium on new data centers
Texas Governor Greg Abbott has issued a statewide moratorium on new data center permits, directing the Texas Commission on Environmental Quality to stop issuing air and water permits. This action follows earlier measures to freeze grid connections and address water use concerns, aiming to rein in the state's booming data center industry. The moratorium, effective until at least December, is a politically contentious issue ahead of the November election.
Texas Governor Greg Abbott has announced a statewide moratorium on new permits for data centers, directing the Texas Commission on Environmental Quality (TCEQ) to halt the issuance of air and water permits. This latest move expands on previous actions taken by the governor, which included a freeze on new power grid connections in August and an order for the Texas Water Development Board (TWDB) to report data centers failing to respond to water use surveys.
The moratorium is a direct response to the rapid expansion of the data center industry in Texas, which has caused significant strain on the state's power grid and water resources, leading to public outrage and political debate. Projects seeking to connect to the grid account for 90% of proposed electric use, totaling 474 gigawatts, according to ERCOT.
While earlier measures primarily targeted projects connecting to the main power grid, this new order specifically impacts data centers that planned to supply their own power, as they still require environmental permits to begin construction. The permit freeze is expected to halt all new data center construction until at least December.
The timing of the moratorium has drawn criticism from Abbott's Democratic opponent, Austin State Rep. Gina Hinojosa, who suggests it is a temporary, politically motivated action to aid his reelection chances, arguing it will likely be lifted post-election. Governor Abbott, however, stated that Texans must come first and data centers must bear their own costs, protect resources, and complete audits, while also pledging to work with the Legislature to remove financial incentives for data centers.