Gov. Greg Abbott directed the Texas Commission on Environmental Quality on September 21 to stop issuing new environmental permits for data centers until an audit of the industry is finished. The review, run by the Electric Reliability Council of Texas alongside the Texas Water Development Board, covers tax exemptions, water and electricity use plans, facility ownership and how sites handle their effect on surrounding communities, and is expected to be done by the end of 2026.
Abbott said data centers must pay their own way and protect the grid and the state’s water.
