Texas Gov. Abbott orders a halt on all data center permits
Texas Governor Greg Abbott has issued a directive ordering the Texas Commission on Environmental Quality (TCEQ) to halt all data center permits until comprehensive state agency audits are completed. This is the fourth such directive aimed at addressing public opposition and ensuring data centers cover their own infrastructure costs, reduce electricity bills for residents, and comply with water usage regulations. Abbott also plans to work with the legislature to eliminate financial incentives for data centers next year.
Texas Governor Greg Abbott has issued a fourth directive in four months, ordering the Texas Commission on Environmental Quality (TCEQ) to halt all data center permits until state agency audits are finalized. This action comes amidst growing public opposition to data center expansion, particularly concerning water usage and potential burdens on electricity infrastructure.
The directive mandates that data center projects must cover all electrical infrastructure costs, contribute to lower residential electricity bills, and complete all required state audits. This builds on previous orders issued by Abbott, including a June directive for state regulators to audit companies for cost-shifting and water reuse, and an August order for the Public Utility Commission of Texas (PUCT) and Electric Reliability Council of Texas (ERCOT) to audit all data centers in the interconnection process before they can proceed.
Earlier this month, Abbott also directed the Texas Water Development Board (TWDB) to enforce penalties against data centers for failing to provide required water usage information, citing potential civil and criminal violations of the Texas Water Code. He stressed that "Texans must come first," and that data centers must "pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits." He further announced plans to work with the legislature next year to eliminate existing taxpayer-funded financial incentives for data centers.
The governor's latest action partially aligns with a request from state Rep. Gina Hinojosa, D-Austin, who had called for an emergency executive order imposing a moratorium on new data center development. Texas has recently surpassed Virginia in data center construction.