September 21, 2026 – AUSTIN, Texas — Governor Greg Abbott has issued a sweeping directive to the Texas Commission on Environmental Quality (TCEQ), ordering the state agency to halt all pending permits sought by data center projects until comprehensive audits of the state’s electrical grid and water resources are completed.
The directive, announced Monday, applies broadly to state regulatory approvals. It ensures that no agency will move forward with data center developments until the Electric Reliability Council of Texas (ERCOT), the Public Utility Commission of Texas (PUCT), and the Texas Water Development Board (TWDB) finalize their ongoing investigations.
What Happens to Already Issued Permits?
While the Governor’s directive strictly orders that “TCEQ will issue no permits sought by data center projects” moving forward, the official announcement focuses on halting new approvals and aligning future permitting decisions with upcoming audit findings.
Specifically, the directive mandates that as ERCOT and the TWDB conduct their evaluations, TCEQ must “align its permitting decisions with the Governor’s directives and use the information from those audits.” Furthermore, TCEQ is requir...