Governor Greg Abbott’s September 21, 2026, directive to the Texas Commission on Environmental Quality (TCEQ) has expanded an existing pause by halting all state environmental permits for data centers until the Electric Reliability Council of Texas (ERCOT) completes its comprehensive audit of the massive interconnection queue. This builds on the August 3 order directing ERCOT and the Public Utility Commission to review hundreds of gigawatts of proposed projects for grid impact, ownership, incentives, water use, and costs, with the audit report targeted for December. Local actions, including city zoning bans and county reviews, reflect resident concerns over electricity rates and water strain from AI-driven data center growth, while Abbott has signaled plans for legislative changes in the 2027 session. Traders are weighing how these executive pauses and the upcoming audit resolution may shape any formal statewide moratorium timeline.