Abbott extends Texas data center moratorium to environmental permits
Texas Gov. Greg Abbott directed the Texas Commission on Environmental Quality to stop issuing data center-related permits until ERCOT finishes auditing the state's grid connection waitlist. This broadens an August moratorium that had already paused new grid approvals for data centers, extending the freeze into environmental sign-offs needed for construction.
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Texas had been projected to overtake Virginia as the world's largest data center market by decade's end, and this expanded halt threatens to stall that trajectory at a critical growth moment. BloombergNEF estimates nearly 50 gigawatts of proposed capacity, roughly 20% of the U.S. data center pipeline, could be affected, potentially costing the industry over $8 billion in revenue by early 2027.
- Abbott's order stops TCEQ from issuing new data center permits pending an ERCOT grid waitlist audit.
- The move widens an existing moratorium from grid connections to environmental approvals.
- Analysts warn the pause could jeopardize $8 billion in data center revenue and threaten Texas's lead in the sector.
Source: cnbc.com — Isabel O'Brien, 2026-09-21
Published there as: “Texas Gov. Abbott orders data center permit halt weeks after issuing moratorium”
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