Governor Abbott Directs TCEQ To Halt Data Center Permits
Governor Greg Abbott has directed the Texas Commission on Environmental Quality (TCEQ) to halt all data center permits until the Electric Reliability Council of Texas (ERCOT) completes an audit. This measure aims to ensure data centers protect the grid and water resources, comply with reporting requirements, and cover their own infrastructure costs. Abbott also plans to eliminate financial incentives for data centers in the next legislative session.
Governor Greg Abbott has issued a directive to the Texas Commission on Environmental Quality (TCEQ) to immediately halt the issuance of all permits for data centers. This stoppage will remain in effect until the Electric Reliability Council of Texas (ERCOT) and the Texas Water Development Board (TWDB) complete comprehensive audits on data center impacts. The Governor emphasized that all state agencies, including the Public Utility Commission of Texas (PUCT), ERCOT, and TWDB, must acquire necessary information to make informed decisions before proceeding with regulatory approvals for data center developments.
Abbott stated that "Texans must come first," asserting that data centers must bear their full electrical infrastructure costs, contribute to lower residential electricity bills, and protect both the state's electric grid and vital water resources. He specifically directed ERCOT and PUCT to audit data centers undergoing interconnection processes to prevent grid reliability compromise, and instructed TWDB to enforce water-use reporting, address past non-compliance, and collaborate on the audit for water-use data.
The Governor's directive mandates that TCEQ align its permitting decisions with these audits and provide an update on compliance by October 19, 2026. Furthermore, Governor Abbott announced plans to collaborate with the Legislature in the upcoming session to eliminate any financial incentives currently benefiting data centers in Texas.