Abbott freezes all state permits for data centers, halting projects even off the grid

Order threatens Rio Grande Valley projects, including a $4 billion campus now under construction near Harlingen

AUSTIN — Gov. Greg Abbott on Monday ordered the Texas Commission on Environmental Quality to stop issuing permits for data centers, an escalation that closes the main loophole in his earlier freeze and marks a sharp reversal for a governor who less than a year ago cast Texas as the nation’s home for the industry.

In a letter to the state’s environmental agency, Abbott directed TCEQ to withhold permits for data center projects until the Electric Reliability Council of Texas finishes auditing large facilities seeking to connect to the state power grid. He also said no other state agency may move forward with regulatory approvals tied to data center development until that information is in hand.

“Simply put, Texans must come first,” Abbott said in a statement. “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.”