Texas Halts Data Center Permits for ERCOT Audit

Governor Abbott orders a suspension on new data center permits until Texas evaluates their impact.

Governor Greg Abbott has directed the Texas Commission on Environmental Quality to stop issuing permits for data centers. This pause will remain in effect until the Electric Reliability Council of Texas completes an audit of these centers. Meanwhile, the Public Utility Commission and ERCOT will assess data centers' effects on grid reliability and security. The Texas Water Development Board is tasked with ensuring compliance with water-use reporting and is prepared to impose penalties for non-compliance. Data centers are required to cover electrical infrastructure costs, reduce residential power bills, and report electricity and water usage. Additionally, they must not deplete water resources needed by local communities and adhere to community protection setbacks. Governor Abbott plans to work with the Legislature to remove financial incentives for these facilities.