AUSTIN, Texas — Gov. Greg Abbott has directed the Texas Commission on Environmental Quality to halt permits sought for data center projects until state officials complete reviews of their impact on the electric grid and water resources.
Abbott’s Sept. 21 directive requires TCEQ to align its permitting decisions with reviews from the Electric Reliability Council of Texas (ERCOT), the Public Utility Commission of Texas (PUCT) and the Texas Water Development Board (TWDB).
“Simply put, Texans must come first,” Abbott said. “Data centers must pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits.”
ERCOT and PUCT are auditing data centers that are moving through the state’s electric grid interconnection process. TWDB is also requiring major water users, including data centers, to report water consumption and other information for the state’s review.
Abbott’s directive requires data center projects to:
- Cover the costs of electrical infrastructure they require.
- Report their electricity and water use.
- Avoid using water needed by local communities.
- Follow setback requirements intended to protect nearby communities.
- Complete the required ERCOT audit.
Abbott said the state will use the audits to determine whether data center development could affect grid reliability or threaten water resources needed by Texas communities.
TCEQ must provide the governor’s office with an update on its compliance with the directive by Oct. 19.
Abbott also said he plans to work with lawmakers during the next legislative session to eliminate financial incentives for data centers.
The directive follows Abbott’s Aug. 3 order directing PUCT and ERCOT to audit data centers advancing through the grid interconnection process. ERCOT was then considering more than 474 gigawatts of requests to connect to the Texas grid, more than five times the state’s record peak electricity demand.