Texas regulators approve data center permits despite Abbott's environmental pause

Texas regulators kept processing permits for new data centers in March and April even after Gov. Greg Abbott ordered a temporary pause on the projects last month, a review of public records from watchdog group FracTracker shows. The permits were approved by the Public Utility Commission and the Railroad Commission, the two agencies that oversee electricity and land use for large‑scale facilities. Abbott’s order was meant to give the state time to assess the climate impact of the booming digital‑infrastructure buildout, but the paperwork kept moving forward.

The pause came amid a surge of public opposition to data centers that are flooding the state’s power grid. Texas is already wrestling with a record‑high demand for electricity, and data centers are among the fastest‑growing users of electricity in the United States. They can consume as much power as a small city, pushing the grid toward more fossil‑fuel generation at a time when the state has pledged to cut emissions. Environmental groups argue that the rapid expansion threatens Texas’s climate goals and could lock in new natural‑gas plants for decades.

FracTracker’s analysis found that at least 12 permits were approved between March 1 and April 30, covering projects that together could draw up to 4,000 megawatts of power. The permits were filed by companies such as Microsoft, Google and a handful of regional operators. The agencies said the approvals were part of routine processing and did not require a formal halt. Environmental advocates, including the Sierra Club’s Texas chapter, called the findings “a clear sign that the governor’s order is being ignored.” Industry representatives countered that data centers bring jobs and tax revenue and that the pause would disrupt contracts already in place.

The next steps could see legal challenges to the agencies’ actions and pressure from the state legislature to tighten oversight of data‑center siting. Abbott has signaled he may issue a more detailed directive that includes specific emissions thresholds. If the pause is enforced, developers may have to submit new environmental reviews, which could delay projects by months or years. The outcome will shape how Texas balances its ambition to be a digital hub with its commitments to reduce greenhouse‑gas emissions and keep the power grid reliable.