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.
The freeze remains in place until the Electric Reliability Council of Texas (ERCOT) and Texas Water Development Board (TWDB) complete their audits.
“Simply put, Texans must come first,” Abbott
saidin a statement. “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.”
ERCOT has been reviewing approximately 474 gigawatts of proposed new electricity demand. That figure represents five times the state’s record peak load. About 90 percent of the requests come from data centers, according to the governor.
The governor, in a letter to TCEQ Executive Director Kelly Keel, directed the state environmental agency to send an update on project compliance to the governor’s office by Monday, Oct. 19.
Abbott on Aug. 3 had already directed the Public Utility Commission of Texas (PUCT) and ERCOT to audit every data center still in the interconnection process with the goal of maintaining power grid reliability and ensuring that water resources are not put at risk.
He said any project that fails the requirements will not be approved for grid connection. “Our top priority is to protect Texans’ safety and quality of life,” Abbott said at the time. “Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid.”
On Sept. 14, the governor also turned his attention to protecting Texans’ water resources, directing the TWDB to enforce water-use reporting rules for data center projects.
Abbott also ordered penalties for past reporting failures and legal consequences for future ones, including possible criminal referrals and a bar on TCEQ water permits. The board was also ordered to assist ERCOT with water-use data for the audits.
Abbott’s office said some operators “appear to have committed civil and criminal violations” by holding back information the board needs for the state water plan. The Texas Water Code requires recipients of a TWDB survey to complete and return it. Failure to report can be prosecuted as a crime. It can also block a facility from TCEQ permits, amendments, or renewals.
“Data centers must share the duty to protect Texas water,” Abbott said at the time. “The Texas Water Code requires a complete and accurate water use survey.”
A letter was also sent to TWDB chairwoman L’Oreal Stepney and executive administrator Bryan McMath. The board was ordered to brief the governor’s office by Oct. 14 on its enforcement steps and to keep the governor updated on audit progress and completion.
Texas already ranks near the top nationally for data centers. Data Center Map figures put the state at a combined 544 operating, under-construction, and planned facilities. Only Virginia has more.
Under the state’s approval conditions, data center projects must cover all electrical infrastructure costs. They must comply with an ERCOT audit and report on their projected electricity and water use, while ensuring no impact on the community.
They must report on ownership and tax incentives, and abide by setback rules for maintaining a minimum distance from nearby residents.
TCEQ must align its permitting decisions with the governor’s directives and audit results.
Locals previously expressed their concerns over the data center development to The Epoch Times. Clayton Tucker, secretary of the Texas Farmers Union, said he worries about irrigation wells.
“It can cost up to $40,000 to drill for a new well, and some of these centers are water hogs, using incredible amounts of water here in the Dust Bowl,” Tucker said. Some wells have decreased by 25 feet.
Abbott said in June that he will work with lawmakers in the next legislative session to write his data-center standards into law.
State Attorney General Ken Paxton has floated separate legislation that would require closed-loop cooling systems and bar data centers from rural neighborhoods, as well as facilities funding their own electricity and adding capacity rather than draining it.
Reuters contributed to this report.









