A group of Texans believe they’ve discovered evidence that the state’s environmental regulatory agency has continued to issue permits to data centers despite Governor Greg Abbott’s call for it to stop.
The nonprofits Public Citizen and FracTracker Alliance, working with local activists in Texas, looked through the public database of the Texas Commission on Environmental Quality (TCEQ) and discovered that the organization has worked on multiple permits for data center projects since Abbott called for a pause in the process on September 21. Abbott’s office denied approving any new permits in a statement to 404 Media.
According to Public Citizen and the FracTracker Alliance, which cite documents publicly available on the TCEQ’s website, the agency has reviewed documents and assigned engineers related to more than a dozen permits related to data center projects in the state. Public Citizen listed more than 15 and the Fractracker Alliance found 35. The same day the nonprofits announced their findings, The Texas Tribune published a report that Abbott had received $9 million in donations from developers and owners of data centers.
According to the documents reviewed by 404 Media, TCEQ issued air-emission limit certificates to a large data center in Houston; approved the construction of stormwater coverage for data centers in Abilene, Barstow, and Royse City; and fast tracked gas power plants for more than a dozen data center projects.
“The TCEQ’s own data indicates that it’s business as usual for data centers and affected communities were promised a freeze. And instead what they’re getting is another reason to distrust the TCEQ and ultimately ineffective attempts to govern by press release,” Kathryn Guerra of Public Citizen said during a press conference on Monday about the findings. “Absent any comprehensive guardrails imposed by the Texas legislature, the industry will continue to move forward as fast as it can, and the TCEQ may let it.”
"They're still putting in that power plant, and there ain't nothing me and my people can do about it. We're just going to have to keep that boot on our neck. It ain’t right.”
Texas is poised to be the data center capital of the world. Three hundred already operate in the state, 100 are under construction, and 200 more are being planned. The projects include Big Tech companies like Meta — which is constructing a $14 billion data center in El Paso — smaller scale local projects like one in Taylor that would be built on land meant for a public park, and massive startups like the nuclear-powered Fermi data center in Amarillo.
In general, people hate data centers and it’s become a major political issue for voters in Texas. On September 21, Abbott directed the TCEQ to “halt all permits sought by data centers.” Abbott said he’d told the state’s water and electric utility agencies to audit all the projects and directed “the TCEQ to pause the issuance of all permits related to data center projects until [the Electric Reliability Council of Texas] completes its review.”
Abbott’s order is broad and data centers are large and complicated construction projects with a lot of moving parts that require dozens of permits and plans. It’s possible that some of the permits uncovered by the nonprofits were filed before Abbott’s September 21 pause.
Many, however, were clearly issued afterward. Twelve of the 14 applications for gas plants and generators were filed in October. TCEQ used an expedited review process for eight of them. One was an air permit for engines and turbines that would power a data center in the Dallas suburb of Irving, Texas. The builder submitted the permit for expedited review on October 6 and a TCEQ engineer completed the initial review two days later, according to publicly available documents reviewed by 404 Media.
“No permits have been approved,” Governor Abbot’s press secretary Andrew Mahaleris told 404 Media. “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. Likewise, no other state agency will approve data center-related permits until the Public Utility Commission, ERCOT, and the Water Development Board have the information they need to make informed decisions. Texans must come first.”
404 Media asked Abbott’s office why there are multiple data center related stormwater construction projects listed as “approved” and was told to talk to TCEQ, which did not respond.
Sam Law, a researcher and manager of communications at FracTracker Alliance, told 404 Media that TCEQ gave him “a more exacting interpretation of their own situation,” he said. “Which is that they are accepting applications, but not moving forward with reviewing them. That was shown to not be true.”
Law also noted that the stormwater construction permits that read as “approved” in the TCEQ system are the result of a regulatory loophole. “The state has just approved a generic construction stormwater permit, and then to get onto that permit, people file a notice of intent and then they add them to a pre-existing permit,” Law said.
The stormwater construction permit is required to raise and level ground. “It’s often the final approval needed to move forward to prepare the site to actually build the physical structure," he added. In areas where there’s no zoning restrictions or the city is unincorporated, then that permit is all a company needs to start building.
“The Caldwell Technology Park [...] the Stargate facility, and a bunch of other very large hyperscale facilities have gotten regulatory approvals in the form of this notice of intent, so it's not like a real pause,” he said.
Law said he believes Abbott is trying to project opposition to data centers without doing the real regulatory work. “If the point of the pause is to stop the sort of approvals of data centers, that's not what's been happening,” he said.
Multiple data center projects are underway in Abilene, Texas — including OpenAI’s Stargate project. According to TCEQ’s records, it issued a water quality permit for the Abilene data center on September 23. “We are, in fact, going to get a massive gas turbine plant right to people’s houses,” Abilene resident and Democratic state senate candidate Riley Rodriquez said during Public Citizen’s press conference.
Rodriquez said that residents had gotten letters from TCEQ about the incoming gas plant and how it might affect air quality in the region. The people of Abilene have fought and won the right to testify at upcoming public hearings.
“At the end of the day they’re going to flip that switch. Doesn't matter what we have to say at that public hearing, and I know that is a doom and gloom way to look at this. But that's the fact,” Rodriquez said. “The fact of the matter is, we can go to that. We can have the best comments. We can have the best information [...] and I could have 500,000 people behind me, and it doesn't matter because they're going to flip that switch because they put the money on it anyways. And we got to live with that — with those consequences.”
Rodriquez said the people of the region found out about Stargate too late to do anything about it. “We're in a unique situation for us because we didn't have a chance to do any of the things that these great people are doing. We didn't have a chance to do any of that. ‘It was built, concrete's poured, generators are going in, boys. Sorry,’” he said.
“So Abbott made his announcement. That's really great, that's really awesome,” Rodriquez said. “Guess what? They're still putting in that power plant, and there ain't nothing me and my people can do about it. We're just going to have to keep that boot on our neck. It ain’t right.”
In his September 21 letter, Abbott said he’d ordered the pause because “the goal is to put Texans first.”
