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‘Business as Usual’: Despite Governor’s Directive, TCEQ Continues Processing and Issuing Data Center Permits

Several permits moved forward as soon as the day after Abbott told TCEQ to stop

AUSTIN, Texas — Texas Commission on Environmental Quality (TCEQ) records indicate the state’s environmental regulator continues to process data center permits, actions that run counter to Gov. Greg Abbott’s assurances that the agency would pause them, Public Citizen and grassroots advocates announced today.

The agency’s actions include finalizing and issuing several water quality permits, while advancing major- and minor-source air quality permits through review and public comment.

“The TCEQ’s own data indicates that it’s business as usual for data centers,” said Kathryn Guerra, director of Public Citizen’s TCEQ Watchdog Campaign. “Affected communities were promised a freeze. Instead, they’re getting another reason to distrust the TCEQ and ineffective attempts to govern by press release. Absent comprehensive guardrails imposed by the Texas Legislature and signed into law, the industry will continue to move forward as fast as it can – and the TCEQ may let it.”

On Sept. 21, Abbott issued a letter and press release directing the TCEQ to pause all data center permitting until the Electric Reliability Council of Texas (ERCOT), which manages the state’s electric grid, completed a statewide audit of data center projects. The following day, the agency moved forward with three major source air permits.

In the past week, Public Citizen and advocates monitoring proposed projects in their communities have found that the TCEQ advanced or issued 16 data center permits:

  • The day after the governor’s directive, the  TCEQ mailed a Notice of Preliminary Decision for three major-source air permit applications: VoltaGrid in Abilene, NRG Prairie Energy in Grandview, and Nexus Hubbard Power in Hubbard. Importantly, the notices were a legally required step that triggered a 30-day public comment period, and a top TCEQ staffer told Public Citizen that residents should act as though the comment deadline is in effect. Together, the permits have the potential to emit 38 million tons of air pollution per year.
  • The TCEQ advanced at least four minor-source air quality permits for natural-gas-powered turbines or generators through an engineering review and approval,  including a permit in Caldwell County, where residents have been tracking opportunities to oppose the authorizations.
  • The TCEQ finalized and issued an industrial wastewater discharge permit at the site of the Bitdeer data center in Rockdale.
  • The TCEQ issued at least seven new construction stormwater authorizations for data centers and amended one other.

The governor issued the pause in response to growing backlash against the rapid buildout of data centers that has spread across the state, even as he has resisted calls to bring lawmakers to Austin for a special session to address residents’ concerns.

Texas is already home to more than 300 data centers in operation, with nearly another 250 at different stages of development, according to the Texas Tribune. The resource-hungry facilities require massive amounts of electricity, water and land. Community members have documented other impacts to their neighborhoods, like increased traffic, noise and powerful lights that can make night seem like day.

The required electricity has led developers to build their own power sources, most often fossil-fuel-burning power plants and diesel-powered backup generators that require air quality permits. Some facilities also need water quality permits for the discharge of their cooling systems, which require immense amounts of water in a drought-prone state.