Texas Regulator Processed Data Center Permits After Governor's Pause Order, Nonprofits Say

According to a report by 404 Media, nonprofits Public Citizen and FracTracker Alliance examined the public database of the Texas Commission on Environmental Quality (TCEQ) and found that the agency continued to process permits for data center projects after Governor Greg Abbott called for a halt on September 21, 2026. The documents show TCEQ issued air-emission limit certificates to a large data center in Houston and approved stormwater construction coverage for facilities in Abilene, Barstow, and Royse City. Additionally, more than a dozen gas power plants associated with data center projects received expedited reviews.

Andrew Mahaleris, press secretary for Governor Abbott, denied that any new permits were approved, stating that TCEQ "has not taken and will not take any proactive actions related to the approval of data center permits" until other state agencies complete their audits. However, Sam Law, a researcher at FracTracker Alliance, pointed out a regulatory loophole regarding stormwater permits: companies can file a notice of intent to join a pre-existing generic permit, which effectively serves as regulatory approval. Law noted that major projects like the Stargate facility obtained these approvals, meaning "it's not like a real pause."

This dispute arises as Texas positions itself as a global data center capital, with 300 facilities operating, 100 under construction, and 200 planned. For investors in AI infrastructure, the discrepancy between political directives and administrative reality introduces uncertainty regarding project timelines and compliance risks. While the Governor attempts to address voter opposition to data centers, the operational status of TCEQ suggests that without comprehensive legislative guardrails, the industry may continue to advance rapidly.