Texas Governor Greg Abbott has directed the state's environmental quality commission to suspend the issuance of data center permits until an audit of grid risks is completed. Abbott stated on Monday that permitting will remain paused until the Electric Reliability Council of Texas (ERCOT) finishes its review, following his earlier orders for the grid operator, the Public Utility Commission of Texas, and the Texas Water Development Board to audit all data centers to ensure they do not threaten the state's power grid or water security.

In his statement, Abbott emphasized that data center projects must bear all electricity infrastructure costs so that their development ultimately lowers residential power bills, and they must not consume water resources needed by local communities. He also noted plans to work with state lawmakers to eliminate any financial incentives for data centers.

The permit suspension in Texas comes amid growing domestic opposition to data centers nationwide. Research firm Data Center Watch reported that from April to June this year, approximately 45 projects with a combined value of $68 billion were blocked or delayed due to local government resistance. Data center construction is also becoming a prominent issue in the 2026 U.S. midterm elections; a recent poll found that 64% of Americans would be less likely to vote for a candidate who supports building local data centers. President Donald Trump, however, has dismissed such opposition, warning that it could give China an edge in the artificial intelligence race.