Texas Governor Directs a Halt on Data Center Permitting With State Agency Audits

The directive, issued Sept. 21, 2026, blocks any state agency from approving new data center development until the Electric Reliability Council of Texas completes a statewide review of data centers going through its interconnection process. Abbott's letter states that the Public Utility Commission of Texas, the Texas Water Development Board, and ERCOT all need to review that audit before regulatory approvals can move forward again.

The move builds on a broader state look at data center growth that Texas officials had already started earlier this year.

Data centers draw enormous amounts of power, and Texas has watched that demand climb fast as more projects seek connections to the grid. Water use factors in too, given the Texas Water Development Board's role in the review chain. The audit timeline hasn't been made public.

A governor just froze an entire industry's paperwork with one letter. Nobody yet knows how long the freeze lasts.