Texas Governor Greg Abbott has put a freeze on new permits for data centers from the state’s environmental regulator until a full audit of existing facilities is complete. The review is looking at three main issues: energy consumption, tax breaks, and water usage. No new permits will be issued until the state finishes evaluating all these factors.

What’s on Hold

The pause covers all new construction and operational permits for data centers issued by Texas’ environmental regulator. Any pending applications for new permits are also on ice until the audit wraps up.

Audit Focus: Power, Tax Breaks, Water

The state is running a deep-dive into how data centers impact infrastructure and local resources. The big questions: how much electricity they’re using, which tax incentives are in play, and how these sites are managing their water needs.

Earlier: Grid Connections Put on Ice

Before this, Texas had already halted new grid connections for data centers and other large power users. There’s now a backlog of more than 470 GW of capacity waiting for hookup.