Governor Greg Abbott issued an order on September 21, 2026 to halt all approvals for new data center projects across Texas until the Electric Reliability Council of Texas (ERCOT) completes its ongoing audit. The pause applies to every pending application and will remain in effect until ERCOT, the Public Utility Commission of Texas (PUC) and the Texas Water Development Board (TWDB) have gathered the information they deem necessary for further review.
The decision was announced as state officials continue to examine a wave of data center proposals that have been submitted in recent months. Officials from ERCOT, the PUC and the TWDB are working together to assess the potential impact of additional data center construction on the reliability of the state’s power grid. The audit being conducted by ERCOT is intended to provide a comprehensive view of the grid’s capacity and resilience in the face of growing demand.
By suspending new approvals, the governor’s office aims to give the three agencies sufficient time to evaluate whether the existing infrastructure can accommodate the projected energy needs of future data facilities. The move reflects a broader concern among Texas policymakers about the stability of the electric system, especially after a series of high‑profile outages in recent years.
The pause does not affect data centers already operating in the state, but it does put a temporary hold on any new construction, expansion or major modification that requires state approval. Stakeholders in the technology and real‑estate sectors have been advised to await further guidance from ERCOT, the PUC and the TWDB before proceeding with any new projects.
State officials indicated that the audit results will inform any subsequent decisions on data center approvals, ensuring that future developments align with the grid’s capacity and the state’s overall energy strategy.