Texas Puts Data-Center Permits on Hold as ERCOT Considers 474 GW in Requests

Texas has halted data-center permits while state agencies review a surge in proposed electricity demand and its potential impact on the grid, water supplies and infrastructure.

Gov. Greg Abbott directed the Texas Commission on Environmental Quality (TCEQ) on Sept. 21, 2026, to stop issuing permits sought by data centers until the Electric Reliability Council of Texas (ERCOT) completes its audit. The order also pauses other state regulatory approvals tied to data-center development until required project information is obtained.

ERCOT was considering more than 474 gigawatts of requests to connect to the Texas grid as of Aug. 3, 2026. That figure was more than five times Texas’ record peak electricity demand, and about 90% of the requests involved data centers. The requests represent proposed projects seeking grid access and capacity, not operating facilities, and some may not be built.

The 474-gigawatt figure is separate from ERCOT’s large-load queue, which reached about 226 gigawatts in November 2025, up from 63 gigawatts in December 2024. Data centers accounted for about 73% of that November queue.

The state audit will examine each project’s projected electricity demand, plans for on-site generation, water consumption and sources, cooling systems, public incentives, community protections, ownership and controlling interests. Texas also requires data centers to cover electrical infrastructure costs, report electricity and water use, avoid using water needed by local communities and meet setback requirements.

The Public Utility Commission of Texas (PUCT) approved ERCOT’s Batch Zero process on June 18, 2026. The process groups qualifying large-load projects of at least 75 megawatts for combined reliability and transmission studies. Projects must complete eligibility and verification requirements before receiving final classifications.

ERCOT’s process lists July 10 and July 24, 2026, deadlines for project attestations, transmission-provider materials and other submissions.

The Sept. 21 order followed Abbott’s Aug. 3 directive requiring the PUCT and ERCOT to conduct a comprehensive audit of data centers moving through the grid-interconnection process. The later order expanded the pause to TCEQ permits and other regulatory approvals.

“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.”

The Texas Water Development Board (TWDB) and ERCOT are among the agencies involved in the required reviews, while state agencies must withhold further regulatory approvals until the required information is obtained.