Texas pauses new data center permits and grid connections
On August 3, Governor Abbott directed the PUCT and ERCOT to audit data center projects in the interconnection process. No project advances until it is audited, and projects found noncompliant could be denied a grid connection. On September 21, he directed TCEQ to stop issuing data center permits. That freeze also covers off-grid projects with their own power, and it holds until ERCOT finishes its audit and the Texas Water Development Board finishes its water review. No end date has been set.
The audit covers tax incentives, power demand and on-site generation, water use and cooling, community impacts, and ownership. To restart permitting, data centers will have to meet six conditions, including paying for all dedicated grid infrastructure and reporting their power and water use.