Permit moratorium ordered on new Texas data centers

Published 5:32 am Tuesday, September 22, 2026

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Gov. Greg Abbott is widening his moratorium on data centers, directing Texas environmental regulators to stop issuing permits for new projects across the state.

The order marks Abbott’s latest effort to rein in Texas’ booming data center industry after he froze new connections to the power grid in August. The rapid expansion has fueled outrage in rural communities and created a political headache for a governor who declared just last year that he wanted Texas to become an epicenter of data center development.

The moratorium has spilled into the governor’s race, with Abbott’s Democratic opponent, Austin state Rep. Gina Hinojosa, questioning its timing and pushing for legislative action.

In a letter Monday, Abbott directed the Texas Commission on Environmental Quality to withhold new air and water permits until ERCOT completes an audit of large-scale data centers seeking to connect to the state power grid.

“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 aud...