Texas freezes data-center permits while audits review grid and water impact

Texas Gov. Greg Abbott directed the Texas Commission on Environmental Quality to halt all data-center permits until ERCOT completes an audit of their impact on grid reliability and water resources, with involvement from PUCT and TWDB. Data centers must fund their own electrical infrastructure, report electricity and water usage, avoid using water needed by local communities, and comply with setback requirements. TCEQ will align permitting with audit findings and report back to the governor by Oct. 19, 2026; Abbott also intends to pursue eliminating data-center incentives in the next legislative session.