The Texas Commission on Environmental Quality must stop issuing new permits for data centers, Gov. Greg Abbott said Sept. 21.
The overview: His order expands an existing pause on data center development in the state amid consistent public criticism of the booming industry. Abbott, who is running for a fourth term as governor, has recently moved to slow the growth of data centers after calling Texas “the epicenter of AI development" last year.
The context: Hundreds of proposed data centers are currently being audited by the Electric Reliability Council of Texas, which operates the state power grid.
Some developers may be able to get around the ERCOT pause by building in-house power infrastructure that is not connected to the grid, experts have said.
However, any construction project impacting at least one acre of land requires permits from TCEQ.
What they're saying: "As Texas faces increasing pressure on our water supplies and electric grid, we need to ensure that data centers operate efficiently and sustainably," said Luke Metzger, executive director of Environment Texas.