Denton, Texas — Governor Greg Abbott on September 21 instructed the Texas Commission on Environmental Quality to freeze environmental authorizations for data center facilities while grid operators complete an evaluation of the statewide electrical system. Under the executive directive, environmental regulators must pause new approvals for commercial computing hubs while the Electric Reliability Council of Texas, the Public Utility Commission of Texas, and the Texas Water Development Board compile necessary operational information.
> "Simply put, Texans must come first," said Governor Greg Abbott in announcing the regulatory pause. "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."
State leaders stated that pausing new authorizations protects transmission stability and municipal water supplies from surging commercial power demands. Under the administration's standards, facility developers must finance necessary power grid interconnections, prevent household utility cost increases, avoid consuming municipal water, submit ongoing electricity and water records, and follow local boundary setbacks.
The directive follows earlier executive mandates requiring grid audits of computing facilities seeking utility hookups, alongside water board measures penalizing overdue conservation filings. Abbott ordered agency director Kelly Keel to ensure TCEQ permitting decisions incorporate the completed audit data, requiring an administrative progress report to the governor by October 19, 2026. Looking toward the forthcoming legislative session, the governor stated he will collaborate with state lawmakers to eliminate financial incentives for data center developers.
