Gov. Greg Abbott ordered all permitting for data centers to stop last month saying that state officials needed to audit their use of resources.
But at least 16 permits were still issued to data centers, including one in the San Antonio area, according to a report issued by an advocacy group on Monday.
Officials from Abbott’s office and the Texas Commission on Environmental Quality (TCEQ) initially denied that permits were still being issued, but later said a permit for the one San Antonio-area data center had been suspended.
“These have been suspended and communication was sent to the applicants communicating this much,” said Ryan Vise, the environmental agency’s director of external relations, on Wednesday.
“TCEQ’s automated electronic filing application system has likewise been shut down,” Vise said. “To ensure all applications are thoroughly reviewed by agency staff to determine if they are related to data centers, applications must be physically provided to TCEQ.”
Abbott issued his directive on Sept. 21, ordering that TCEQ halt its permitting for data centers while the Electric Reliability Council of Texas (ERCOT) audited the facilities that were signing up to connect to the Texas grid.
“Gov. Greg Abbott today directed the Texas Commission on Environmental Quality to halt all permits sought by data centers until the Electric Reliability Council of Texas completes its audit,” read a press release from Abbott’s office. “Because the Public Utility Commission of Texas, ERCOT, and the Texas Water Development Board require that information to make informed decisions, no state agency shall move forward with regulatory approvals related to data center development until it is acquired.”
ERCOT has not finished its report and won’t present its findings to the PUCT until Dec. 10, according to an email from the council.
During the past few weeks, it appears a construction stormwater permit for a data center project near San Antonio was processed by the state.
That application was issued on Oct. 13 for Sitespan, LLC, for a data center project on Bolton Road between San Antonio and Seguin.
The agency says it has since been suspended.
Nonprofit Public Citizen found at least 16 instances where permits were issued to data center projects after Abbott’s Sept. 21 directive, including permits for major air pollution, wastewater and other minor air pollution and stormwater needs.
“TCEQ should have absolutely prevented the process from happening,” said Kathryn Guerra, Public Citizen’s TCEQ campaign director on Monday. “TCEQ should stop these automated processes.”
Both TCEQ and Abbott’s office initially said no new permits had been issued. In an email on Oct. 19, Vise said the commission has not issued any permits related to data centers and is complying with Gov. Abbott’s directive.
On Oct. 20, Andrew Mahaleris, Abbott’s press secretary, also said no permits from TCEQ or any other state agency had issued permits for data centers since the directive.
Guerra said Public Citizen noticed that TCEQ had suspended permits on Tuesday. She was frustrated the agency hadn’t acknowledged the permits it had issued.
“They think Texans are just ignorant enough to believe that. But TCEQ went against the governor’s directive and now they’re gaslighting people,” she said.
TCEQ seemed to walk back its earlier statements on Wednesday, when its spokesperson said the permits had been suspended and the agency was shifting to a physical process to better review applications.
Guerra said she told the TCEQ on Oct. 7 that permits were still being approved during a public meeting.
Public Citizen also flagged that on Oct. 16, a draft permit was issued for new sources of air emissions to a project called Sa01 Data Center near Interstate 37. Guerra said that draft permit was not finalized.
Proponents of data centers have cited their added value to local tax rolls, jobs created from construction and importance to digital infrastructure. But criticism from residents worried about declining property values and water and power use pushed Abbott to take action amidst a tight race for the governor seat with Democratic challenger Gina Hinojosa.
While Abbott ordered a halt to data center permitting, he has also received $9 million from data center-related donors, according to a Texas Tribune report.
While cities can take steps to regulate data centers — San Antonio could have new rules before the end of the month — proponents and detractors of data center development are looking to the next legislative session in 2027 for action from lawmakers.
