Abbott Directs Halt to Data Center Development

Texas Governor Greg Abbott (R) directed the Texas Commission on Environmental Quality (TCEQ) to pause all permits sought by data centers. All permits are on pause until an audit by the Electric Reliability Council of Texas (ERCOT) is completed.

“Simply put, Texans must come first,” Abbott said in 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 about 474 gigawatts of new electricity demand, reports indicate.

In a letter to TCEQ Executive Director Kelly Keel, Abbott said updates on compliance must be sent to his office by October 19. “As ERCOT and TWDB conduct their audits, TCEQ must similarly ensure that its permitting decisions align with my directives,” the letter read. “This process will ensure that TCEQ has sufficient information, including information gained from pending audits, and time to thoroughly review all proposed permits to make fully informed permitting decisions.”

Abbott ordered an audit to be conducted in August.

Abbott directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct the audit, which must be completed before any data center development continues. According to Abbott’s office, about 90% of the new energy requests come from data centers. The overall demand is more than five times the state’s peak electricity requests, which “could endanger the reliability and stability of the Texas electric grid.”

In his letter to PUCT and ERCOT, the governor requested that the entities collect information relating to the “extent to which data centers are paying their own way or depending on the state for financial assistance,” and the “extent to which data centers are bringing their own.”

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