TEXAS · DATA CENTERS
Events of August 3 – September 22, 2026
What happened: Gov. Greg Abbott on September 21 directed the Texas Commission on Environmental Quality to stop issuing permits to data center projects until they complete audits by ERCOT and the Texas Water Development Board, The Texas Tribune’s Paul Cobler reported. The order broadens an August 3 directive that paused ERCOT grid connections for large data centers, and reaches “behind the meter” projects that generate their own power. A TCEQ spokesperson said the agency has paused all air and water permits and authorizations for infrastructure directly supporting data centers, Houston Public Media reported.
Claim: “Simply put, Texans must come first. 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,” Abbott said.
Check: The audits cover electricity use, water consumption, community impacts, ownership and tax incentives. Only 28% of data centers answered a state-mandated water-use survey, according to the Tribune, and Abbott directed the water board to penalize those that didn’t. ERCOT expects to finish its audit in December. TCEQ owes the governor’s office an update by October 19.
Concern: The freeze covers the air permits needed for on-site gas generation and the water permits for drawing from rivers, so projects planning to power themselves off the grid are caught along with those waiting on ERCOT. No industry reaction was reported in the initial coverage.
Outcome: Permits are paused statewide pending the audits; the TCEQ update is due October 19.
Location Decision takeaway
Texas has been one of the busiest markets for large data center loads. For now, the state is the one putting projects on hold, with conditions attached: disclose power, water, ownership and incentives, or wait. Projects with complete water and power data in hand will be best placed when permits resume.
Original reporting: Paul Cobler, The Texas Tribune, September 21, 2026. More from Paul Cobler. Also: Houston Public Media, via KERA; S.E. Jenkins, CBS Texas.
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