Texas halts state data-center permits pending grid audit

Reuters reported at 20:53 UTC on September 21 that Texas Governor Greg Abbott had halted all state-issued permits for data centers until the Electric Reliability Council of Texas, or ERCOT, completes a grid audit. The announcement is a formal state regulatory action.

Abbott directed the Texas Commission on Environmental Quality to stop issuing the permits and said no state agency should move forward with regulatory approvals for data centers until the grid audit is complete and related water-use information has been obtained. The order puts power-system capacity and water-resource information into the same review process.

Texas has attracted substantial data-center and artificial-intelligence infrastructure investment, projects that typically require large amounts of electricity and may use significant water. Reuters reported on September 14 that the state had already ordered tighter water reporting and enforcement for data centers, with new or renewed permits potentially denied when required information is not supplied.

The public reporting does not specify when the audit will be completed, every permit category affected, or whether already permitted and operating facilities will face retroactive action. The measure therefore should not be described as a permanent ban, nor does it establish that every project under construction has stopped.

The accompanying image is an N Globe editorial illustration, not documentary or official footage. Verification status: confirmed. News value: B-level important news. Origin region: United States. Primary section: Technology. Related region: World. Source time: September 21, 2026, 20:53 UTC. Report date: September 21, 2026.