Texas authorities have suspended 17 construction permits related to data center projects. The state also deactivated the STEERS electronic portal, which previously provided automatic authorizations for such applications. The system remained operational for a month after Governor Greg Abbott issued a directive to pause new approvals.
The suspended permits specifically concern stormwater construction, a mandatory phase for site preparation. According to researcher Sam Law, the automated system continued to approve projects, including those linked to OpenAI and Amazon, even after the governor's moratorium was announced. The state is now conducting an audit of 1,800 planned data center projects.
The review process focuses on the impact of these facilities on the local power grid, water consumption, and community quality of life. Projects failing to meet requirements set by the Public Utility Commission of Texas and the Electric Reliability Council of Texas will be denied grid connection.
This development aligns with broader regulatory trends in the United States. New York previously implemented a year-long ban on data center projects exceeding 50 megawatts. Meanwhile, in Northern Virginia, Amazon recently canceled plans for four data centers following community opposition, opting to repurpose the land for housing instead.
