Texas suspends 17 data center construction permits, shuts down automated portal

State disables STEERS system after watchdog reports reveal permits issued despite Governor Abbott's September halt request

By LineZotpaper AI staff

Published24 October 2026

Read Time2 min

Texas has suspended permits for 17 data center projects and disabled an automated portal that continued to approve new data center construction permits weeks after Governor Greg Abbott called for a halt in September, the state's environmental agency confirmed.

The Texas Commission on Environmental Quality (TCEQ) disabled the STEERS electronic filing portal, which had automatically authorized permits, after watchdog groups FracTracker Alliance and Public Citizen reported that more than two dozen permits had been issued since the governor's request. A message on the website said the portal was shut down "to ensure all applications are reviewed by agency staff to determine if they are related to data centers."

The suspended permits cover stormwater construction, a key step in site preparation for data centers. Governor Abbott ordered a halt to 1,800 data center projects in September, citing concerns over power use, water consumption, and community impact. "Our top priority is to protect Texans' safety and quality of life," Abbott said at the time. "Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first."

FracTracker researcher Sam Law said the STEERS system had been approving new projects, including those for OpenAI and Amazon, as recently as earlier in the week. The Texas action follows similar moves in other states: New York enacted a year-long ban on data centers larger than 50 megawatts in July, and Amazon abandoned plans for four data centers in Northern Virginia after community backlash, offering its land for housing instead. The growing scrutiny reflects tensions between the rapid expansion of AI infrastructure and local concerns about energy costs, water shortages, and deforestation.

Analysis

Why This Matters

The suspension signals a regulatory shift in a state that has been a major hub for data center development, potentially slowing the pace of new infrastructure.
Communities across the US are pushing back on data center impacts, from power grid strain to environmental effects, and Texas's move could set a precedent.
The automated portal's continued operation after the halt highlights gaps in oversight that may prompt stricter controls nationwide.

Background

Texas has seen a boom in data center construction driven by demand for AI computing, but that growth has raised alarms about the burden on the state's power grid and water resources. Governor Abbott's September call for a pause on 1,800 projects was one of the largest such actions, and the recent discovery that approvals continued via the STEERS system has intensified pressure for reform. Similar concerns have led to moratoriums and community protests in other states, including New York and Virginia.

Key Perspectives

Governor Greg Abbott: said the state's priority is protecting Texans' safety and quality of life, and any project failing to comply with state law and grid connection rules must be denied. FracTracker Alliance: through researcher Sam Law, reported that data center permits were still being issued through the automated portal despite the governor's halt request, including permits for OpenAI and Amazon facilities.

What to Watch

Whether the TCEQ completes its staff review of pending applications and how many are eventually revoked or approved.
The outcome of the broader audit of 1,800 data center projects ordered by Abbott, and whether any are denied grid connection.
Potential for other states to adopt similar permit suspension or moratorium measures in response to community and environmental concerns.

Sources

Texas has suspended 17 data center construction permits and shut down automated portal that rubber-stamped projects · Tom's Hardware

Checked

10 claims in this story checked against 1 source: 5 supported.

Show each claim

SupportedTexas suspended permits for 17 data center projects and shut down the automated portal.Latest from Tom's Hardware: “Texas has suspended the construction permits of 17 data center projects and disabled a web portal that automated filing for new permits”
SupportedThe state disabled STEERS after watchdog reports described permits issued despite Abbott’s September request to halt new permits.Latest from Tom's Hardware: “Governor Greg Abbott asked for new permits to be halted in September 2026, but watchdog groups FracTracker Alliance and Public Citizen both published reports detailing more than two dozen permits issued to Texas data center projects”
Partly supportedThe state’s environmental agency confirmed the suspension of the 17 permits.Latest from Tom's Hardware: ““TCEQ’s electronic filing application used for automatic authorizations has been temporarily shut down to ensure all applications are reviewed by agency staff to determine if they are related to data centers””
SupportedThe portal message said it was shut down “to ensure all applications are reviewed by agency staff to determine if they are related to data centers.”Latest from Tom's Hardware: ““TCEQ’s electronic filing application used for automatic authorizations has been temporarily shut down to ensure all applications are reviewed by agency staff to determine if they are related to data centers””
Partly supportedAbbott ordered a halt to 1,800 data center projects in September.Latest from Tom's Hardware: “Governor Abbot put the brakes on 1,800 data center projects while work was done to audit them.”
Partly supportedAbbott said, “Our top priority is to protect Texans’ safety and quality of life,” and quoted the requirements involving PUCT, ERCOT and state law.Latest from Tom's Hardware: ““Our top priority is to protect Texans’ safety and quality of life,” Abbott wrote in a statement provided at the time. “Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first.””
Partly supportedThe suspended permits are for stormwater construction, described as a key step in site preparation for data centers.Latest from Tom's Hardware: “All 17 of the suspended permits are for stormwater construction, a process that sees construction companies raise and level the ground. It’s also a process that is a vital part of the approval process for all construction projects in Texas.”
SupportedFracTracker researcher Sam Law said the system had recently approved projects including those for OpenAI and Amazon.Latest from Tom's Hardware: “Sam Law, a researcher at FracTracker, says that it’s been happily approving new projects, including those for OpenAI and Amazon that went through the system earlier this week.”
SupportedNew York enacted a year-long ban on data centers larger than 50 megawatts in July.Latest from Tom's Hardware: “The Responsible Data Center Development Act was signed into law as Senate Bill S10642 by New York Governor Kathy Hochul in July.”
Partly supportedThe Texas action follows similar moves in other states, including Amazon abandoning plans for four data centers in Northern Virginia and offering its land for housing.Latest from Tom's Hardware: “In Northern Virginia, Amazon bowed to a community backlash to plans to build four new data centers — going so far as to offer its land up for housing instead.”