The Texas Commission on Environmental Quality (TCEQ) has suspended permits associated with data center projects and temporarily shut down an online permitting system after watchdog organizations found that the agency continued processing and approving certain permits despite Gov. Greg Abbott's directive to halt them.
The actions follow an Oct. 19 investigation by Public Citizen and FracTracker Alliance that identified 35 permitting actions after Abbott's Sept. 21 directive, including construction stormwater approvals, air emission-limit certifications and applications advancing through review. An update to the investigation on Oct. 21 added another nine permits that TCEQ either received or took some action on after Abbott's directive.
According to an Oct. 22 announcement from Public Citizen, TCEQ suspended at least 17 permits issued to data center developers after the governor's directive. The agency has acknowledged suspending specific permits identified by the watchdog organizations but maintains that it complied with Abbott's order. TCEQ has not independently confirmed the number of suspended permits.
TCEQ also temporarily shut down its State of Texas Environmental Electronic Reporting System (STEERS), which handles environmental permit applications and regulatory reporting. As of Oct. 23, the agency's website continued to display a notice stating that the system was unavailable while staff reviewed applications to determine whether they were related to data centers.
According to The Texas Tribune, TCEQ spokesperson Ryan Vise said applications would need to be physically submitted so agency staff could determine whether they were associated with data centers.
The system previously allowed certain applications, including construction stormwater notices, to receive automatic authorization. The shutdown also affects other users of the platform, which handles a range of environmental permits and regulatory reporting requirements.
Abbott's Sept. 21 directive followed earlier actions addressing data center infrastructure demands. In August, he directed state utility regulators to audit data centers seeking connections to the Texas electric grid. He subsequently directed the Texas Water Development Board to enforce water-use reporting requirements, including potential permitting consequences for facilities that fail to comply.
The September directive halted permitting pending an audit by the Electric Reliability Council of Texas (ERCOT) examining data centers' electricity and water demands. According to Texas Public Radio, ERCOT expects to present its findings to the Public Utility Commission of Texas on Dec. 10.
FracTracker's investigation identified 11 construction stormwater approvals after the directive. According to the report, these authorizations remove a regulatory barrier to site preparation activities such as clearing, grading and excavation, although other approvals may still be required.
The watchdog organizations also identified 14 applications involving gas plants and generators serving data centers or supporting their construction that advanced through the review process after Sept. 21. Seven air emission-limit certifications were recorded as issued during the same period.
Additionally, TCEQ mailed preliminary-decision notices Sept. 22 for three major-source air permit applications involving VoltaGrid, NRG Prairie Energy Center and Nexus Hubbard Power. These notices were part of the permitting process and did not constitute final permit approvals.
The findings appeared to conflict with an explanation TCEQ provided to FracTracker on Oct. 14. According to the organization, the agency said companies could continue submitting permit applications but that those applications would not advance through review.
TCEQ and Abbott's office initially maintained that no data center permits had been issued following the directive. The agency subsequently acknowledged suspending permits identified in the watchdog investigation and changed how applications would be processed.
The suspension of permits and shutdown of automated authorizations affect how developers can obtain regulatory approvals while the audit remains underway. The agency has not announced when its online permitting system will resume operations.
FracTracker and Public Citizen have also called for greater transparency in data center development, including a centralized public database connecting proposed facilities with related power plants, infrastructure projects and permitting records.
The complete investigation and supporting permitting records are available on FracTracker Alliance's website.
Texas Suspends Data Center Permits Following Watchdog Report
What to Know:
- Public Citizen says at least 17 permits were suspended, although the state has not independently confirmed that number.
- TCEQ's online permitting and reporting system remained unavailable as of Oct. 23, with applicants directed to alternative submission methods.
- State regulators are awaiting the completion of an audit examining data centers' electricity and water demands.
