Governor Greg Abbott’s September 21, 2026 directive to the Texas Commission on Environmental Quality (TCEQ) to halt permits for data center projects, pending an Electric Reliability Council of Texas (ERCOT) grid and water audit, created the current de facto pause on new large-load AI infrastructure. Watchdog reports from mid-October revealed TCEQ continued processing applications, issuing stormwater approvals and preliminary notices for gas plants serving facilities, prompting the agency to suspend its electronic filing system and sparking debate over enforcement. Texas hosts a massive share of U.S. data center capacity amid surging artificial intelligence demand, but rapid growth has strained ERCOT’s interconnection queue of nearly 500 GW. The ERCOT review is expected by early December, while lawmakers could consider stricter rules or a formal moratorium during the 2027 session.