Abbott Orders Texas Environmental Agency to Stop Data Center Permits Pending Audits

Gov. Greg Abbott on Monday directed the Texas Commission on Environmental Quality (TCEQ) to halt every permit sought by data centers amid state efforts to enforce its data center standards.

Abbott Orders Texas Environmental Agency to Stop Data Center Permits Pending Audits

TL;DR

  • Governor Greg Abbott has halted all environmental permit approvals for data centers in Texas.
  • The freeze is in effect until the Electric Reliability Council of Texas (ERCOT) and the Texas Water Development Board (TWDB) complete their audits.
  • Abbott stated that data centers must 'pay their own way, protect our grid and water' before permits will be issued.
  • Data centers account for about 90% of the proposed new electricity demand, representing five times the state's record peak load.
  • Previous directives from Abbott have targeted grid reliability and water resource protection related to data centers.
  • Data center operators have been accused of civil and criminal violations for withholding necessary water-use information.
  • Texas ranks near the top nationally for data centers, with Virginia having more.
  • Under state approval conditions, data centers must cover infrastructure costs, comply with ERCOT audits, and report projected electricity and water usage.
  • Concerns have been raised by locals about the significant water consumption of data centers in drought-prone areas.
  • The governor plans to work with lawmakers to codify data center standards into law.