Key facts
- Texas Governor Greg Abbott has halted all state-issued permits for data centers.
- The permit halt is pending the completion of an audit of the Electric Reliability Council of Texas grid.
- State agencies are prohibited from moving forward with regulatory approvals for data center development during this period.
Texas Governor Greg Abbott announced on Monday that all state-issued permits for data centers have been halted. The directive, issued to the Texas Commission on Environmental Quality, mandates a stop to permit issuance and prohibits any state agency from proceeding with regulatory approvals for data center development. This pause is contingent upon the completion of an audit of the Electric Reliability Council of Texas (ERCOT) grid and the acquisition of related water-use information. In Nevada, Governor Joe Lombardo signed an order requiring data centers to pay power costs, protect existing customers, and meet new standards on water use and grid reliability. A recent poll shows Abbott leading his Democratic opponent, state Rep. Gina Hinojosa, by 48% to 41%, with 8% undecided. Hinojosa has criticized Abbott for encouraging data center growth. The Data Center Coalition stated its members are complying with the audit and will work with the state to ensure responsible growth.