Governor Greg Abbott Pauses New Texas Data Center Permits

Governor Greg Abbott ordered a statewide moratorium on new data center permits on September 21, directing the Texas Commission on Environmental Quality to pause the issuance of all air and water authorizations for the industry. The directive requires data centers to undergo audits by the Electric Reliability Council of Texas and the Texas Water Development Board to ensure facilities do not strain state power grids or water supplies.

Abbott stated that data centers must provide their own power instead of relying on the Texas grid and must demonstrate that they will lower utility costs for neighboring residents. The pause is expected to remain in effect until the audits conclude in December 2026. Additionally, the governor expressed support for granting local communities greater authority over land use decisions regarding these facilities.

While the Texas Commission on Environmental Quality has indicated it will uphold the order, the move has faced criticism. Some legal experts and environmental activists question whether the governor possesses the authority to halt permits for an entire industry without legislative approval, while Democratic candidate Clayton Tucker characterized the moratorium as political theater timed for the upcoming election.