Permit moratorium ordered on new Texas data centers
Governor Greg Abbott has ordered Texas environmental regulators to stop issuing air and water permits for new data center projects across the state, expanding a previous moratorium on power grid connections. This statewide pause is in effect until ERCOT completes an audit of large-scale data centers, aiming to protect the state's power grid and water resources. The move has become a point of contention in the upcoming gubernatorial election.
Governor Greg Abbott has expanded a previously issued moratorium on data centers, directing the Texas Commission on Environmental Quality (TCEQ) to halt the issuance of new air and water permits for data center projects statewide. This action follows an August order that froze new data center connections to the power grid, and an earlier directive for the Texas Water Development Board (TWDB) to report facilities failing to respond to water use surveys.
The Governor stated that "Texans must come first," emphasizing that data centers need to "pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits" before TCEQ will issue permits. The latest order effectively halts all new data center construction until at least December, as even projects with their own power infrastructure still require air and water permits.
This escalating action comes amid rapid data center expansion in Texas, which has generated public outcry in rural areas and become a political issue in the governor's race. Democratic opponent, Austin state Rep. Gina Hinojosa, has criticized the moratorium's timing, suggesting it's an election-year maneuver and advocating for a special legislative session to address data center concerns. Abbott, in turn, announced plans to work with the Legislature to eliminate financial incentives for data centers.