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ARTICLE · 24 SEPTEMBER 2026

Governor Abbott Orders TCEQ To Pause All Permit Issuance For Data Center Projects

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Governor Abbott has ordered Texas environmental regulators to halt all data center permit issuance until grid operators complete a comprehensive audit in mid-December 2026. The sweeping directive affects not only grid-connected facilities but also fully islanded data centers relying on behind-the-meter generation, creating uncertainty for developers and their contractual obligations.

United StatesEnvironment
Daniel J. Pope
Daniel J. Pope
Whit Swift
Whit Swift
Jared W. Berg
Jared W. Berg
Bryan Clark
Bryan Clark
Matt Paulson
Matt Paulson

What to Know

  • Governor Abbott ordered TCEQ on September 21, 2026 to halt all permit issuance for data center projects statewide until ERCOT completes its grid audit, expected in mid-December 2026.
  • The pause applies to all data center projects regardless of whether they use ERCOT grid power, including fully “islanded” facilities relying on behind-the-meter generation.
  • Developers of data center projects and supporting facilities should review their contracts now for force majeure and change-in-law provisions that may provide relief during the permitting pause.

On September 21, 2026, Governor Abbott ordered the Texas Commission on Environmental Quality (TCEQ) to “halt all permits sought by data centers.” Addressed to outgoing Executive Director Kelly Keel, the order would apply to all data center projects in the State of Texas in the middle of any TCEQ permitting process. This “pause” will be in effect until ERCOT completes its review of data centers moving through the

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