Governor Abbott’s September 21, 2026, directive to the Texas Commission on Environmental Quality (TCEQ) has created a de facto statewide moratorium by halting air, water, and related permits for data center projects until the Electric Reliability Council of Texas (ERCOT) completes its audit of queued large-load facilities. This expands the August 3 grid-connection pause and addresses over 470 GW of interconnection requests—more than five times peak demand—plus concerns over power costs, water use, and local impacts. ERCOT’s report is due around December 10, with a TCEQ compliance update expected by October 19. Local actions in counties such as Hays and cities like San Marcos add further restrictions, while the November election timing and potential 2027 legislative changes on incentives remain key variables for traders.