Texas Governor Greg Abbott has ordered the Texas Commission on Environmental Quality to stop issuing permits for data center projects until the state grid operator, the Electric Reliability Council of Texas (ERCOT), finishes an audit expected in December. Abbott said data centers must bear their own costs, protect the power grid and water resources, and complete the required review. He also plans to propose ending incentives for data centers in the next legislative session. The move puts Texas alongside New York and Pennsylvania as another state tightening scrutiny of data center approvals. The directive also stands in contrast to Donald Trump’s support for expanding AI infrastructure. Trump had previously criticized efforts to restrict data center development and warned that such limits could benefit China. Texas’ grid is currently facing more than 474 gigawatts of interconnection requests, with about 90% tied to data centers.
Texas Governor Greg Abbott has ordered the Texas Commission on Environmental Quality (TCEQ) to pause permits for data center projects.
The pause will remain in place until the Electric Reliability Council of Texas (ERCOT), the state’s grid operator, completes an audit that is expected to finish in December.
In the directive, Abbott said data centers must cover their own costs, protect the power grid and water resources, and complete the required audit. He also said he plans to propose ending incentives for data centers in the next legislative session.
The step makes Texas another state to tighten data center approvals, following New York and Pennsylvania.
According to the report, the order contrasts with Donald Trump’s push for AI infrastructure. Trump had previously criticized restrictions on data center development and warned that such policies could benefit China.
Texas’ grid is currently dealing with more than 474 gigawatts of interconnection requests, about 90% of which come from data centers.
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