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Gov. Abbott pauses new data center permits until water, power audit complete

In an effort to slow data center development in Texas, Gov. Greg Abbott is pausing new permits for data centers.

On Monday, the governor directed the Texas Commission on Environmental Quality (TCEQ) to stop issuing new permits until ERCOT, the Public Utility Commission of Texas (PUCT) and The Water Development Board (TWDB) complete an audit of new data centers.

"Simply put, Texans must come first," Abbott said in a news release. "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 audit will look into electrical and water use, as well as the impact on grid reliability and security on local communities.

TCEQ was asked to provide an update to the Office of the Governor by Monday, Oct. 19. 

Abbott previously directed TWDB to compel data centers to comply with water-use reporting requirements, impose legal consequences for past and future failure to comply with state law, and partner with ERCOT on the audit to obtain additional water-use information.

Data centers have emerged as key issue in Texas politics: where candidates for governor and the U.S. Senate stand

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