AUSTIN — Gov. Greg Abbott has ordered the Texas Commission on Environmental Quality to halt permits for data center projects until state regulators complete audits of their impact on the state’s power grid and water resources.
The Sept. 21 directive expands Abbott’s earlier pause on data center approvals, which initially focused on projects seeking connections to the Electric Reliability Council of Texas grid. The latest order also affects environmental permits tied to infrastructure supporting data centers.
Abbott said the Texas Public Utility Commission, ERCOT and Texas Water Development Board need more information about data centers before state agencies approve projects.
“Simply put, Texans must come first,” Abbott said in a statement. “Data centers must pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits.”
TCEQ spokesperson Ryan Vise said the agency has paused air and water permits and authorizations related to construction or development of infrastructure that directly supports data centers while ERCOT conducts its audit.
The directive requires TCEQ to provide Abbott’s office with an update on its compliance by Oct. 19.
Abbott first ordered PUC and ERCOT in August to audit data centers moving through the ERCOT interconnection process. ERCOT said the initial pause applied to projects seeking at least 75 megawatts of power, leaving smaller facilities and some projects that planned to generate their own electricity outside the scope of that action.
The latest directive broadens the pause to projects that need environmental permits, including facilities that may require permits for water use or on-site power infrastructure.
ERCOT and TWDB are conducting a broader review of data centers’ electricity and water use. Abbott also directed TWDB last week to enforce state water-use reporting requirements for data centers and work with ERCOT on the audit.
ERCOT is reviewing more than 474 gigawatts of requests to connect data centers to the Texas grid, an amount that exceeds five times the state’s record peak electricity demand on the ERCOT system.
Abbott said data centers must cover their electrical infrastructure costs, report electricity and water use, protect water supplies needed for local communities and meet setback requirements.
The governor also said he plans to work with the Texas Legislature during its next session to eliminate financial incentives for data centers.
ERCOT expects to complete its audit in December. Critics of Abbott’s approach have called for a special legislative session to address data center development before the regular legislative session begins in January.
