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AUSTIN - Texas Governor Greg Abbott announces that he is ordering the Texas Commission on Environmental Quality (TCEQ) to pause all permits for data centers.
Permits paused for Texas data center
What they're saying:
According to a press release from the governor's office, Gov. Abbott issued an order on Monday "to halt all permits sought by data centers until the Electric Reliability Council of Texas (ERCOT) completes its audit."
In a letter to the TCEQ CEO, Gov. Abbott says data centers cannot be approved until ERCOT, the Public Utility Commission of Texas (PUC), and the Texas Water Development Board (TWDB) gather the information they need.
PUC and ERCOT are looking into the centers' interconnection process to make sure they don't impact Texas' power grid or natural resources.
The TWDB and ERCOT are investigating the data centers' water use, and the TWDB is said to be urging the centers to follow state requirements.
GARLAND, TXAS - MARCH 4: People on a group tour look down into Dallas TX1 data center's server vault at the NTT Data center campus in Garland, Texas, March 4, 2026. (Tom Fox/The Dallas Morning News via Getty Images)
Developers with pending projects must disclose whether they plan to generate their own electricity or rely on the Texas grid. The audit also requires information on projected power consumption, water use, cooling technology, neighborhood impacts such as noise, lighting and traffic, emergency coordination, tax incentives and subsidies, and the ownership structure of each project.
"Because the information sought by the PUC, ERCOT, and TWDB is necessary to make informed decisions by each of those agencies, no other state agency shall move forward with regulatory approvals related to data centers until this information is acquired. Therefore, I direct the TCEQ to pause the issuance of all permits related to data center projects until ERCOT completes its review," Gov. Abbott says in the letter.
Texas halts power grid connections for new data centers over energy, water supply concerns
Gov. Greg Abbott ordered state regulators to pause grid approvals for new data centers until a comprehensive audit on power and water usage is completed.
When the audits are done, Gov. Abbott says the TCEQ must only approve the audited data centers that follow his directives. The TCEQ is ordered to give an update on their permitting decisions by Oct. 19.
In the press release, Gov. Abbott says the next legislative session will work to "eliminate any financial incentives for data centers."
The Source: Press release from Governor Abbott's Press Office and previous FOX reports.