AUSTIN, Texas (KTRK) — Gov. Greg Abbott’s office announced on Monday that the governor directed the Texas Commission on Environmental Quality (TCEQ) to halt all data center permits.
In a release, the governor’s office said he directed the commission to halt permits until the Electric Reliability Council of Texas (ERCOT) completes its audit of data centers. According to the state officials, the audit is to ensure that the data centers’ development “does not compromise the reliability of the Texas electric grid and does not put Texans’ natural resources at risk.”
This announcement follows Abbott’s previous announcement that he directed the Texas Water Development Board to penalize data centers that don’t obey state water laws.
PREVIOUS REPORT: Gov. Greg Abbott calls for data center penalties if not complying with state water laws
The governor’s office laid out guidelines for data center projects, stating that they must cover all their own electrical infrastructure costs, not use water needed by local communities, report electricity and water usage, and complete the ERCOT audit.
“Simply put, Texans must come first,” Governor Abbott stated in the release. “Data centers must pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits. Until they do, TCEQ will issue no permits sought by data center projects.”
SEE ALSO: State leaders look to enact more regulation when it comes to data centers in Texas
Rice University political science professor Mark Jones suspects the governor’s pause on permitting is really about buying time.
“What he’s thus done is given the legislature time when it reconvenes in January to pass new regulations on data center construction and data center operation,” Jones said.
The governor has said he wants lawmakers to eliminate tax breaks for data centers.
In Jacinto City, city leaders are celebrating Monday’s announcement.
Earlier in September, they learned a company named Raeden was looking to convert an abandoned factory into a data center and said they were powerless to stop it.
“But now it looks like it’s actually gonna be stopped by the governor’s office, so that’s a good thing,” City Manager Lon Squyres said.
On Tuesday night, the city council will vote on an ordinance requiring special use permits for data centers with strict restrictions on noise and water use.
They’re also concerned about the potential impact on the electric grid, which is why they’re hoping state lawmakers take action when they meet next year.
“We don’t know the ERCOT grid as well as the state does, obviously, and we don’t want to do anything that would impose a limitation or draw on resources that would put our residents in peril,” Squyres said.
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