Contractors trying to figure out whether Texas data center work is on hold or moving got a mixed answer this week. A new report says the Texas Commission on Environmental Quality kept advancing certain data center applications in the month after Gov. Greg Abbott ordered a permitting pause, Community Impact reported. The governor's office says no permits have been approved.
The pause and the report
On Sept. 21, Abbott directed TCEQ to "halt all permits sought by data centers" while the Electric Reliability Council of Texas audits proposed data center projects, according to Community Impact.
FracTracker, an oil and gas watchdog group, and the consumer group Public Citizen reviewed TCEQ records and found that as of Oct. 16 the agency had moved at least 35 data center-related applications forward. Their Oct. 19 report says that since the pause, TCEQ has:
- Fast-tracked or assigned engineers to 14 applications for power generation facilities that would serve data centers
- Approved stormwater coverage for 11 applications, which may put projects on track for construction
- Issued certifications setting air emissions limits for seven applications
- Mailed public notices for three applications
"These actions do not signal an agency trying to pause," FracTracker said in the report.
What state officials say
"No permits have been approved," Abbott press secretary Andrew Mahaleris said Oct. 20, according to Community Impact. "In line with the governor's directive, TCEQ has not taken and will not take any proactive actions related to the approval of data center permits."
TCEQ spokesperson Victoria Cann told Community Impact that "the commission has not issued any permits related to data centers." In an Oct. 19 letter to the governor, interim executive director Steven Schar said the agency had "paused the issuance" of all permits for "infrastructure directly supporting data centers" and that staff are screening applications and pausing those subject to the directive.
Community Impact noted that a message on TCEQ's stormwater permit pages says construction applications tied to data centers are halted until further notice. But stormwater construction permits for projects named in the report, including EdgeConneX's second data center campus in Bastrop County, were listed as "active" at press time.
Projects filed since the pause
Developers have kept filing plans, Community Impact reported. Colvore submitted plans for a one-story Fort Worth data center to the Texas Department of Licensing and Regulation on Sept. 22, and Pacifico Energy and BlackChamber filed plans for a $366 million data center in Cedar Creek on Oct. 7. Permit applications for those projects had not been approved or advanced as of Oct. 20.
State Rep. Gina Hinojosa, an Austin Democrat running against Abbott in the Nov. 3 election, called the governor's stance "an election year stunt" in an Oct. 20 statement.
When the pause could end
ERCOT is scheduled to finish its audit in late November and release findings in early December, according to Community Impact. Abbott said TCEQ should stop issuing data center permits "until ERCOT completes its review," which suggests permitting could resume later this year.
Why it matters for contractors
Stormwater and air permits are basic steps for big jobs. Community Impact notes that construction projects disturbing at least one acre, data centers included, generally need TCEQ stormwater and air permits. When a project's stormwater coverage is active, site work can often move ahead. That's why the stormwater findings in this report matter more to sitework, utility and concrete contractors than the headline fight over whether anything was "approved."
For contractors already working on Texas data center campuses, the report suggests existing jobs with active coverage, like the EdgeConneX campus in Bastrop County, may keep moving. For new projects such as the Fort Worth and Cedar Creek filings, applications are sitting still until the pause ends.
The practical advice: don't count on new data center starts in Texas until after ERCOT reports in December, keep crews on projects that already have coverage, and watch for a wave of permit decisions if the governor lifts the pause late this year. Bidders should also check permit status directly on TCEQ records rather than relying on headlines.