Texas governor orders pause on all data center permits pending state audits

The useful part

Events About The Nooner Advertise Tips The Speakeasy App 0 --> Facebook Twitter 0 shares (The Center Square) – Gov. Greg Abbott on Monday issued another directive on data center expansion, directing the Texas Commission on Environmental Quality (TCEQ) to halt all permits sought by data centers until state agency audits are completed. It's the fourth directive he's issued in four months related to data centers.

How it works

• It was issued as many Texans continue to express widespread opposition to data centers being built across the state, citing water usage among other concerns.
• "Data center projects must cover all electrical infrastructure costs, result in lower residential electrical bills, and complete" all required state agency audits.
• The agencies must complete the audits before any data center project moves forward, he said.
• Earlier this month, he issued a third directive requiring data centers to follow the law, this time calling for penalties to be enforced by the Texas Water Development Board (TWDB).
• In this directive, he said data centers "appear to have committed civil and criminal violations by failing to provide" the TWDB with information about water usage as required by Texas Water Code, The Center...

What to take from it

"This action is consistent with my whole-of-government approach to ensure Texans' natural resources and way of life are protected," Abbott said. Not soon after, dozens of companies said they would comply with his directive, The Center Square reported. He ordered the TWDB to impose legal consequences for past and future failure to comply with state law and to partner with ERCOT to obtain additional water-use information.

Example or evidence

• Any data center project that fails to complete the audit process must be denied interconnection to the state grid, Abbott said.
• "Data centers must pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits.
• TCEQ is required to give his office an update on compliance with his directive by Oct.
• Abbott also said he will work with the legislature next year to eliminate financial incentives for data centers that he and the legislature created.

Details worth keeping

In August, he issued his second directive ordering the Public Utility Commission of Texas (PUCT) and Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive verification and audit of all data centers advancing through ERCOT's interconnection process. "Simply put, Texans must come first," he said. Roughly 10 years ago, bipartisan legislation was enacted that created billions of dollars in tax breaks and other incentives to multi-million and billion-dollar data center companies.

Related coverage

• Kxan: Gov. Greg Abbott directed Texas regulators to stop approving data center permits until audits determine the industry's impact on the state's electric grid and water resources.
• Abc13: Gov. Greg Abbott's office announced that he directed the Texas Commission on Environmental Quality to halt all data center permits until ERCOT finished its audit.
• Natlawreview: On September 21, 2026, Governor Abbott ordered the Texas Commission on Environmental Quality (TCEQ) to "halt all permits sought by data centers.
• Insurancejournal: Texas Governor Greg Abbott ordered the state's environmental watchdog to withhold permits for new data centers until an audit of risks to the power grid is complete.