Texas Halts Permits For Data Centers As Opposition In The U.S. Mounts. Governor Abbott Says Texans Must Come First.

Texas has announced a halt to all permits being sought by data centers until an audit is completed to ensure the reliability of the state's energy grid.

Texas Gov. Greg Abbott said the Electric Reliability Council of Texas (ERCOT) is assessing how many data centers plan to connect to the state's energy grid. Also, the Public Utility Commission of Texas (PUCT) is examining the potential impact of data centers on the state's water supply.

"Simply put, Texans must come first," Abbott said. "Data centers must pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits. Until they do, (regulators) will issue no permits sought by data center projects."

Data centers have become a political flashpoint across the country. Opponents worry that data centers' massive energy usage might spike utility costs. The facilities can also consume thousands of gallons of water for cooling. Other concerns have focused on the need for noise mitigation.

Data Center Watch, an organization that tracks opposition to data centers across the country, reported that in the second quarter of 2026, at least 45 projects worth $68 billion were disrupted by local opposition. "Opposition became more local and project-specific, increasingly targeting permitting, infrastructure, and individual policy decisions as regulatory scrutiny expanded across 49 states," the website states.

Texas is somewhat unique in the U.S. as its energy grid is independent and separated from the rest of the country. ERCOT manages the flow of electricity to more than 27 million Texas customers, or about 90 percent of the state's total electric load. This means that Texas is limited in terms of backup and emergency power that it can bring in from outside Texas.

This means that data centers have the potential to strain the Texas grid, as the state has limited ability to bring in power from other parts of the country when demand spikes.

"Data center projects must cover all electrical infrastructure costs, result in lower residential electrical bills, and complete the ERCOT and TWDB audits," Abbott wrote in a letter to regulators. "Further, data centers must not use water needed by local communities, must report electricity and water usage, and must abide by setback requirements that will protect the communities in which they operate."