Texas Governor halts data center permits pending state audits

Texas Governor Greg Abbott has ordered the Texas Commission on Environmental Quality (TCEQ) to halt all permits for data center projects. This directive serves as a moratorium until state agencies complete comprehensive audits regarding the industry's impact on the state's resources.

The audits are being conducted by the Electric Reliability Council of Texas (ERCOT), the Public Utility Commission of Texas (PUCT), and the Texas Water Development Board (TWDB). These investigations aim to evaluate data centers' electricity consumption, water usage, tax incentive reliance, and potential impacts on local communities and grid reliability.

This move follows growing public opposition to rapid data center expansion, which has seen a massive influx of projects seeking to connect to the Texas grid. Currently, the interconnection queue includes approximately 474 gigawatts of proposed demand, which is five times the state's record peak load. Abbott stated that data centers must “pay their own way” and ensure they do not shift infrastructure costs onto Texas residents or jeopardize natural resources.