Local data center officials not worried about Abbott’s permit pause
Texas Governor Greg Abbott ordered the Texas Commission on Environmental Quality to halt new data center permits statewide, strengthening an existing moratorium until energy and water audits are completed. Despite this, Infrakey officials stated it would not disrupt their planned 520-acre data center project in Lacy-Lakeview, which has already faced local opposition. Opponents view Abbott's permit pause as an election-driven move amidst growing statewide resistance to data center development.
Texas Governor Greg Abbott has issued an order to the Texas Commission on Environmental Quality (TCEQ) to cease issuing new permits for data centers. This action aims to strengthen a statewide moratorium on data center development, pending audits by the Electric Reliability Council of Texas (ERCOT) and the Texas Water Development Board (TWDB). The audits will gather information on planned data centers' electricity and water usage, community impact, ownership, and tax break utilization, with Abbott stating that "Texans must come first" and data centers must "pay their own way."
Despite this new state-level hurdle, Infrakey executive Sujeeth Draksharam expressed confidence that the permit pause would not impede their proposed 520-acre data center project near Ross, developed in partnership with the city of Lacy-Lakeview. Draksharam indicated Infrakey is prepared to submit the required water and energy information by the October 12 deadline. The Infrakey project has already encountered significant grassroots resistance since its proposal last fall.
Sara Mynarcik, a leading organizer against the Infrakey project and a resident of Ross, criticized Abbott's moratorium as an election maneuver, questioning its timing given his previous support for the industry. She also highlighted Draksharam's established relationships with the Governor. This move by Abbott marks a shift from his earlier stance to make Texas an "epicenter of AI development" and follows previous directives to ERCOT and the Public Utility Commission of Texas (PUCT) in June, requiring data centers to fully fund electric infrastructure costs. PUCT Chair Thomas Gleeson has since responded, outlining agency efforts and calling for more legislative authority to regulate the industry.