Texas Gov. Greg Abbott has ordered the Texas Commission on Environmental Quality (TCEQ) to pause permits for new data centers until state regulators complete an audit of those projects.
The order was the latest in a series of moves against proposed data centers by Abbott, who has raised concerns about water and power usage — but it marked an escalation affecting more projects than ever before.
In early August, the governor directed the state's utility regulators and the Electric Reliability Council of Texas (ERCOT), which manages the state's power grid, to halt approvals for new data centers until an audit was complete.
The governor touted his actions in August asa "pause" on all new data centers. But ERCOT said it only had the authority to stop grid connections for data centers requesting at least 75 megawatts of power, which is enough electricity to power nearly 19,000 homes. Smaller data centers, as well as projects that would not need to connect to the ERCOT grid because they were building their own power plants, werenot included in the pause.
Additionally, some portions of the state’s power grid in East Texas, the Texas Panhandle and El Paso are not part of the ERCOT-managed grid.The Public Utility Commission of Texas has authority over the electricity network in those areas, but it's not clear how regulators would use their power to stop new data centers outside ERCOT from connecting to the electric grid.
In a news release issued on Monday, the governor said all state agencies will pause permit approvals for data centers until the audit is complete — significantly broadening the number of projects impacted by his pause. For example, data centers may need to seek TCEQ permits to use water from local rivers or to build an on-site power plant, according to theTexas Tribune.
ERCOT and the Texas Water Development Board (TWDB) are conducting a survey of more than 400 data centers' energy and water usage as part of the audit. The survey questions were made public Friday, but individual companies' responses will remain confidential.
"Simply put, Texans must come first," Abbott said in a news release on Monday. "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 governor directed the TCEQ to respond to his latest directive by Oct. 19.
"At the direction of Governor Greg Abbott, the Texas Commission on Environmental Quality (TCEQ) has paused the issuance of all air and water permits and authorizations related to the construction or development of infrastructure directly supporting data centers while ERCOT completes its comprehensive grid and community impact audit," TCEQ spokesperson Ryan Vise said in an email. "TCEQ maintains environmental oversight over supporting infrastructure for these facilities."
ERCOT expects to complete its audit in December. Abbott's critics have urged the governor to order a special session to pass new laws for data centers before the next legislative session begins in January.
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