Overview
- The governor directed the Texas Commission on Environmental Quality to stop issuing permits for data centers until ERCOT finishes an audit of projects in its interconnection process, a step announced Monday, September 21, 2026.
- The Public Utility Commission, ERCOT and the Texas Water Development Board were ordered to gather and share data on power demand and water use to determine how planned data centers affect grid reliability and local water supplies.
- The TWDB was told to enforce water‑use reporting, pursue penalties for noncompliant operators and provide the water data needed for the joint audits.
- Abbott set conditions for future projects that include paying their own electrical infrastructure costs, avoiding use of water needed by nearby communities, reporting electricity and water usage, meeting setback rules and showing audits do not harm residents’ bills or supplies.
- State officials cited rapid, large‑scale growth of the industry and gaps in developer reporting as the reason for the pause and required TCEQ to report back to the governor by October 19, 2026 while the administration pursues legislative action on incentives.