Texas agencies bypass Abbott's data center permit moratorium
The Texas Commission on Environmental Quality has processed dozens of data center-related permits since Governor Greg Abbott's September 21 directive to halt them, advancing gas plants and construction approvals.
Governor Greg Abbott issued a Sept. 21 letter directing the Texas Commission on Environmental Quality to halt all permits sought by data centers. Abbott described the moratorium as an opportunity for state agencies to evaluate the facilities’ impact on water resources and grid stability, writing that no other state agency should move forward with regulatory approvals related to data centers until this information is acquired. The governor issued the pause in response to growing backlash against the rapid buildout of data centers that has spread across the state.
Agencies continue processing permits despite the pause
Since Abbott's Sept. 21 directive, TCEQ has continued reviewing applications and issuing approvals that allow data center development to proceed. An investigation by watchdog groups FracTracker Alliance and Public Citizen identified 35 permitting actions taken by the TCEQ for data center projects in the subsequent weeks. These actions include fast-tracking or assigning engineers to 14 permits, approving stormwater coverage for 11 projects, certifying emissions estimates for seven, and issuing public notice for three.
The permits regard construction of gas power generation facilities for energy-hungry facilities. All of the largest gas power projects currently proposed in Texas are specifically intended to serve data centers. The projects would release tens of thousands of tons of regulated pollutants and more than 100 million tons per year of greenhouse gases.
On Sept. 22, the groups found that TCEQ mailed notices of preliminary approval to three major projects: NRG Prairie Energy Center, VoltaGrid’s ABI-1 power plant, and Nexus’s self-powered data center in Hubbard. The agency opened public comment periods on two of those projects in the following days. Together, the facilities have the potential to emit 38 million tons of air pollution per year, according to Public Citizen. The preliminary approval notices triggered a 30-day comment period, which TCEQ officials confirmed is still going ahead as scheduled.
Regulatory actions and community response
The watchdog groups found approvals of stormwater management permits for data center construction issued after Sept. 21. These included permits for Caldwell Valley Technology Park in Caldwell County, Crusoe’s Abilene campus, and EdgeConneX’s Cedar Creek campus. Stormwater permits marked 'approved' in TCEQ’s system reflect a regulatory loophole where a general construction stormwater permit is used, and applicants file a notice of intent to be added to it. This notice is often the last approval needed to prepare a site for construction, especially in areas without zoning restrictions.
Records show the TCEQ received a permit application for generators at Edged Energy in Dallas on Oct. 6, and an engineer completed an initial review on Oct. 9. In total, twelve of the 14 applications for gas plants and generators were filed in October, after the September 21 pause. TCEQ used an expedited review process for eight of these applications filed in October.
Affected communities were promised a freeze but are getting another reason to distrust TCEQ, said Kathryn Guerra, director of Public Citizen’s TCEQ Watchdog Campaign, at a Monday press conference. Riley Rodriquez, an Abilene resident and Democratic state senate candidate, stated residents received TCEQ letters about a planned gas plant and its possible effect on local air quality. People in the region learned about the Stargate project too late to influence it, Rodriquez said. Abilene residents have since fought for and won the right to testify at upcoming public hearings regarding the gas plant.
Contested claims and political context
Andrew Mahaleris, Abbott’s press secretary, gave a statement saying no permits have been approved and no proactive actions will be taken until the Electric Reliability Council of Texas, the Public Utility Commission, and the Water Development Board have needed information. This contradicts the findings of the watchdog groups. Sam Law, manager of communications at FracTracker Alliance, stated that TCEQ accepted applications but did not proceed with reviews, which he said was shown to be untrue.
FracTracker and Public Citizen said, "TCEQ has continued reviewing applications and issuing approvals that allow data center development to proceed. These actions do not signal an agency trying to pause."
The issue emerges as Texas has 300 data centers in operation, 100 under construction, and 200 more planned. Major projects include Meta’s $14 billion data center under construction in El Paso and a nuclear-powered Fermi data center planned in Amarillo. On the same day the nonprofit findings were announced, The Texas Tribune reported Abbott received $9 million in donations from data center developers and owners. Public comment periods are ongoing for at least two major projects, with communities preparing to testify at upcoming hearings.
