Governor Greg Abbott’s September 2026 directives expanded an existing de facto pause by ordering the Texas Commission on Environmental Quality to halt air, water, and related permits for data center projects until ERCOT completes its grid-interconnection audit (targeted for December 10, 2026) and the Texas Water Development Board finishes its water-use review. These executive actions address overload on the ERCOT grid from hundreds of gigawatts in queued large-load projects and local concerns over electricity rates and water consumption, but they stop short of the formal statewide legislative moratorium the market requires. Traders assign low near-term odds because the current pause relies on administrative orders rather than enacted law, while a 2027 legislative session offers the next clear window for any binding statute. Key upcoming milestones include the October 19 TCEQ compliance update and potential incentive reforms.