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Texas Governor Abbott Halts All State-Issued Permits for Data Centers Until Grid Audit Is Complete
The order requires developers to cover infrastructure costs and disclose power and water use before permits resume.
On Monday, Governor Greg Abbott ordered the Texas Commission on Environmental Quality to halt all data center permits until the Electric Reliability Council of Texas completes its comprehensive audit of grid and community impacts.
ERCOT and the Texas Water Development Board are surveying more than 400 data centers to ensure their development does not compromise grid reliability or natural resources. This directive expands Abbott's earlier August pause on new data center approvals.
Developers with pending projects must disclose energy generation plans, water usage, and cooling technology. Abbott said, "Data centers must pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits."
The TCEQ must provide an update on compliance by October 19, 2026. Abbott plans to work with the Legislature to "eliminate any financial incentives for data centers" during the next legislative session.
Exceptions to the order include smaller data centers and those building independent power plants. "Simply put, Texans must come first," Abbott said, emphasizing that projects must meet state requirements before receiving regulatory approval.