Texas Gov. Abbott Directs TCEQ to Halt All Data Center Permits Until ERCOT and TWDB Audits Are Complete

Gov. Greg Abbott directed the Texas Commission on Environmental Quality to halt all permits to data centers until the Electric Reliability Council of Texas and the Texas Water Development Board complete an audit of data centers (The Texas Tribune). Abbott wrote: “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.” In a letter to TCEQ dated Sept. 21, Abbott said no state agency should move forward with regulatory approvals related to data center development until information from the audits is available to the PUC, ERCOT and TWDB (KBTX). TCEQ is required to update the governor’s office on its compliance by Monday, Oct. 19, 2026.

On Sept. 14, Abbott directed TWDB to compel data centers to comply with water-use reporting requirements, after as few as 28% of data centers responded to a state-mandated water usage survey (The Texas Tribune, KBTX). The Texas Tribune reports the earlier step: Abbott ordered ERCOT on Aug. 3 as part of his moratorium on new data centers connecting to the state’s electric grid. KBTX reports Abbott also said he will work with the Legislature next session to eliminate financial incentives for data centers. Earlier steps: 2026-08-03–abbott-freezes-texas-data-center-grid-connections-ercot-audit and 2026-06-10–abbott-directive-puct-ercot-data-center-infrastructure-costs.