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Texas orders halt to data center permits until audit is complete

September 28, 2026

Gov. Greg Abbott has directed the Texas Commission on Environmental Quality (TCEQ) to halt all data center permits until the results of an Electric Reliability Council of Texas (ERCOT) audit are available.  

The governor said in a statement that the Public Utility Commission of Texas (PUCT), ERCOT, and the Texas Water Development Board (TWDB) require those findings to make informed decisions, and no state agency shall move forward with regulatory approvals related to data center development until they are released. 

The governor said the PUCT and ERCOT audits were to ensure all data centers planning to connect to the grid did not compromise its integrity and put the state’s natural resources at risk. Abbott also 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. 

The TCEQ is required to provide an update to the governor on its compliance with his directive by Oct. 19. 

Abbott also said in the statement that he plans to work to eliminate financial incentives for data centers during the 90th Texas Legislature, which begins Jan. 12. 


Photo by Ruben Reyes from Pexels

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Miles Smith

Miles Smith has more than two decades of communications experience in the public and private sectors, including several years of covering local governments for various daily and weekly print publications. His scope of work includes handling public relations for large private-sector corporations and managing public-facing communications for local governments.

Smith has recently joined the team as a content writer for SPI’s news publications, which include Texas Government Insider, Government Contracting Pipeline and its newest digital product, Government Market News, which launched in September 2023. He graduated from Texas A&M University with a bachelor’s in journalism.

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