Gov. Greg Abbott on Monday ordered the Texas Commission on Environmental Quality to stop issuing permits for data centers until state regulators finish a review of how those projects would strain the electric grid and water supplies.
The directive, issued in Austin, tells TCEQ to freeze permits sought by data center developers until the Electric Reliability Council of Texas completes its audit. Abbott said the Public Utility Commission of Texas, ERCOT and the Texas Water Development Board need that information before any state agency moves ahead.
“Simply put, Texans must come first,” he said. “Data centers must pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits. Until they do, TCEQ will issue no permits sought by data center projects.”
The move expands an earlier pause on grid interconnection requests. Reuters reported that more than 470 gigawatts of data center and other large-load projects were already queued to connect to the Texas grid — more than five times the state’s peak demand. The Dallas Morning News put the interconnection queue at about 474 gigawatts, with data centers making up roughly 90% of that total.
Gov. Abbott directed the TCEQ to halt any new permits authorizing data center projects until ERCOT completes its audit.
— Governor Abbott Press Office (@GovAbbottPress) September 21, 2026
No state agency shall move forward with approvals related to the development of data centers until that information is acquired. pic.twitter.com/MG2s0EKf8x
TCEQ spokesperson Ryan Vise told Houston Public Media the agency has paused all air and water permits and authorizations for infrastructure that directly supports data centers while ERCOT finishes its grid and community-impact audit. TCEQ must report back to the governor by Oct. 19. Politico reported ERCOT has said the electric audit could last until December.
Abbott said projects must cover their own electrical infrastructure costs, help lower household bills, report power and water use, avoid using water communities need, and follow setback rules. On Sept. 14 he directed the water board to enforce reporting requirements and work with ERCOT. He said he will work with the Legislature next session to end financial incentives for data centers.
The freeze affects projects that still need air and water permits to break ground, including proposals already drawing neighborhood fights in North Texas.
