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Texas has suspended 17 construction permits tied to data centers and shut down the automatic approval feature of its online permit system. The move came after watchdog groups found that approvals kept going out even after Governor Greg Abbott ordered a pause.
In September 2026, Abbott told the Texas Commission on Environmental Quality (TCEQ) to stop permits for data center projects. State agencies wanted time to study how these sites affect power supply and other resources. But FracTracker Alliance and Public Citizen found permits that were issued after the order.
The issue involved STEERS, the state's online filing system. It kept processing some construction approvals on its own. According to Tom's Hardware, it cleared applications linked to large projects tied to OpenAI and Amazon.
After the reports came out, TCEQ suspended 17 permits and turned off the automatic approval step. Staff must now check each application to see if it connects to a data center.
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The 17 suspended permits cover stormwater control during construction. They apply to work like clearing, raising, and leveling land before any building goes up. They also help control runoff that can carry harmful material into nearby water.
These permits are only one part of the approval process. Still, a suspension could stall projects that need them to move ahead. FracTracker researcher Sam Law worried that some developers may keep building without knowing their permits were pulled. Watchdog groups also asked why the system stayed on after the governor's order.
The pause gives Abbott's team and the Electric Reliability Council of Texas (ERCOT) time to study how data centers affect the power grid. Officials are also looking at water use, energy demand, and the effect on local communities.
Opposition to big data centers is growing across the country. Residents and advocacy groups point to higher power bills, water shortages, and harm to the environment.
Texas has drawn huge investment in AI buildings. But this episode shows how hard it is to manage that growth. Manual reviews may bring closer checks on new projects while the state works out clearer rules.
