Governor Abbott Directs TCEQ To Halt Data Center Permits

Gov. [CBS DFW]

Governor Greg Abbott announced sweeping restrictions on technology expansion in Texas, directing state agencies to pause approvals for both data center developments and automated license plate recognition systems.

The Republican governor ordered the Texas Commission on Environmental Quality to block all new data center permits until the Electric Reliability Council of Texas completes a comprehensive review of existing facilities. Abbott said the moratorium ensures state regulators have necessary information before moving forward with additional projects. The Public Utility Commission of Texas and the Texas Water Development Board will conduct parallel investigations into how data centers affect grid stability and strain on water supplies serving communities across the state.

"Simply put, Texans must come first," Abbott said in a statement. "Data centers must pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits."

The governor's conditions for future data center development include requirements that companies finance all electrical infrastructure expenses, demonstrate that projects will lower residential power costs, fully disclose electricity and water consumption, and maintain required distances from populated areas. Abbott also signaled intent to work with the state legislature next session to eliminate tax incentives currently available to the industry. The TCEQ must report on its compliance with these directives by mid-October 2026.

Separately, Abbott directed the Texas Department of Transportation to freeze the approval of new permits for automated license plate readers. The action follows his earlier decision to halt state funding for Flock cameras after concerns surfaced regarding privacy protections and potential misuse of the surveillance equipment. The restriction comes despite arguments from some law enforcement agencies that the technology represents an important asset in crime prevention efforts.