Texas · Data center compliance
Texas data center compliance guide: federal, state and local requirements
Texas data center development is effectively on hold through at least mid-December 2026: Governor Abbott ordered an ERCOT/PUCT audit of every large load in the queue, mandatory water-use reporting and a halt on TCEQ permits for data center projects. At the same time, the PUCT finalized SB 6's large-load interconnection rule.
Updated
Serving Dallas–Fort Worth, Hood & Hill counties, San Marcos / Hays County, Austin & San Antonio and West Texas & Panhandle in Texas.
At a glance
Texas data center rules at a glance
Sept. 21, 2026
TCEQ halts all permits related to data center projects, including off-grid sites
$50K/MW
Financial security for large loads of 75 MW or more under the PUCT's SB 6 rule
~Dec. 10, 2026
ERCOT/PUCT audit of the large-load queue due
June 2026
San Marcos becomes the first Texas city to ban data centers
Key takeaways for Texas data center projects
- Texas data centers answer to the PUCT, ERCOT, TCEQ, the Texas Water Development Board, groundwater conservation districts, the Comptroller, TDLR and the State Fire Marshal, plus cities.
- TCEQ stopped issuing data center permits on Sept. 21, 2026 and will not resume until the ERCOT audit ends; the governor has set six conditions for resuming.
- The PUCT's large-load rule (Project 58481) requires a $100,000 study fee and $50,000 per MW of security for loads of 75 MW or more.
- Cities can zone, condition or ban data centers; most counties have little authority beyond floodplain, roads and fire code.
Recent and pending laws
What’s changed for Texas data centers
The rules moving fastest right now. Each entry shows its status and the dates to watch.
Date: Sept. 24, 2026
Attorney General investigation
Reviews compliance with TWDB water-use surveys
Status: Open
Date: Sept. 21, 2026
TCEQ permit pause
Halts all permits related to data center projects
Status: In effect
Date: Sept. 18, 2026
PUCT large-load rule
$100K study fee, $50K/MW security, CIAC, minimum billing for 75 MW+
Status: In effect Oct. 8
Date: Sept. 14, 2026
TWDB directive
Mandatory water-use reporting enforcement; joint water audit
Status: In effect
Date: Aug. 3, 2026
ERCOT/PUCT audit order
Audits all large loads in the interconnection queue
Status: Due ~Dec. 10
Date: June 2025
SB 6
Large-load standards, backup generation disclosure, remote disconnect
Status: Law
Who regulates what
Four layers of oversight on every Texas project
A compliant Texas data center has to clear federal rules, state agency permits, local approvals and utility requirements at the same time.
Federal
- U.S. EPA (air, water, SPCC, EPCRA)
- U.S. Army Corps of Engineers
- OSHA
- FAA
- FERC / NERC
State
- Public Utility Commission of Texas (PUCT)
- ERCOT
- Texas Commission on Environmental Quality (TCEQ)
- Texas Water Development Board (TWDB)
- Groundwater conservation districts
- Comptroller of Public Accounts
- TDLR / State Fire Marshal
Local
- Cities (zoning, building codes, ETJ rules)
- Counties (roads, floodplain, fire code)
Utility & grid
- Oncor
- CenterPoint
- AEP Texas
- TNMP
- Austin Energy and CPS Energy
- Co-ops
Lifecycle
Texas requirements from site selection to decommissioning
01
Site selection
Confirm city limits and ETJ status, the groundwater district, whether the utility is in ERCOT, and any moratorium or pending AG opinion. Budget for PUCT study fees and security.
02
Permitting & construction
TCEQ air authorizations for generators and on-site power and TPDES construction stormwater (both paused for data centers; stormwater NOIs suspended in October 2026), city building permits and TDLR requirements.
03
Operations
SB 6 obligations, including backup generation disclosure and remote disconnect capability, TWDB water-use reporting, air permit limits and ERCOT large-load requirements.
04
Decommissioning
Close fuel tanks under TCEQ rules, terminate air authorizations, handle batteries and electronics properly and settle utility contract and CIAC obligations.
On your jobsite
What this means on your jobsite
Site selection
Most site-selection risk shows up later as a construction delay. Test the ground and the history before you close.
Soils and foundations
Expansive clays across much of Central and North Texas drive foundation design and slab performance for heavy equipment rooms.
You'll need: geotechnical data and early testing to confirm the design assumptions
Environmental history
Lenders and buyers will expect a Phase I environmental site assessment before acquisition, and a Phase II if it flags concerns.
You'll need: an ASTM-based Phase I in the diligence file
City limits and ETJ status
Inside a city, its adopted building code and special inspection program apply. In unincorporated county land, inspection oversight may fall mostly to you and your insurer.
You'll need: a decision now on who will act as your independent inspection and testing agency
Permitting & construction
The TCEQ pause has stopped permits, not the paperwork. Use the wait to get your testing and inspection records ready, so you can start building as soon as permits resume.
Special inspections
Cities that adopt the International Building Code require third-party special inspections of structural concrete, steel, welding and fireproofing.
You'll need: an approved special inspection agency and daily reports the building official will accept
Welds and structural connections
Structural steel, pipe supports and generator skids need weld inspection and nondestructive testing before they’re covered up.
Construction stormwater
Disturbing an acre or more needs TPDES construction stormwater coverage and a working SWPPP. TCEQ suspended data center stormwater notices of intent in October 2026, so coverage now waits on the pause.
You'll need: documented inspections throughout the build
Generators and fuel
Backup generators need a TCEQ air authorization, which is currently paused for data center projects, and the fuel storage brings tank rules and a federal SPCC plan.
You'll need: generator specifications, run-hour limits and tank documentation ready to file
Commissioning before energization
SB 6 and ERCOT large-load requirements put your electrical and backup systems under scrutiny before energization.
You'll need: commissioning records and integrated systems test results showing the systems perform as designed
Operations
Once you’re live, compliance becomes a matter of records: who tested what, when, and against which standard.
Electrical maintenance
NFPA 70B is now an enforceable standard with required maintenance intervals and condition assessments for electrical equipment. Insurers and AHJs increasingly ask for the records.
Backup power readiness
NFPA 110 calls for regular generator exercise and load testing. SB 6 adds disclosure of backup generation and remote-disconnect obligations for large loads, so your backup systems need documented, provable capability.
Cooling and mechanical reliability
Pumps, chillers and CRAH fans fail gradually, and the warning signs show up in vibration data first.
Monitoring you can trust
Environmental and power sensors drive alarms, PUE and the water-use figures you now report to the TWDB. Uncalibrated sensors produce numbers you can’t defend.
Decommissioning
The fastest way to lose value at end of life is a site with undocumented contamination or orphaned tanks.
Tank closure
Fuel tanks must be closed under TCEQ rules, with records of the closure and of any release.
You'll need: inspection and sampling before the tanks come out
Batteries and hazardous materials
UPS and battery energy storage systems need proper removal, handling and recycling records, as do any EPCRA-reportable chemicals on site.
Exit assessment
A post-operations environmental assessment protects the seller and the next owner.
Key local jurisdictions
Where Texas rules get local
Zoning, noise, water and moratoria vary county by county. Confirm the current ordinance before you file.
Dallas–Fort Worth
Largest Texas cluster; Oncor territory and DFW ozone nonattainment add air scrutiny.
Hood & Hill counties
Unincorporated sites with contested county authority over moratoria.
San Marcos / Hays County
Citywide ban adopted June 16, 2026; projects shift to county land.
Austin & San Antonio
Municipal utilities set their own large-load terms; Edwards Aquifer rules.
West Texas & Panhandle
Large AI campuses with on-site generation, now caught by the TCEQ pause.
How ATS + SGS help
One testing, inspection and certification partner for the whole build
Construction & code compliance
Materials testing, special inspections and nondestructive testing so your Texas build passes inspection the first time.
Electrical, fire & commissioning
Electrical and fire protection testing, generator and UPS verification, and commissioning support before go-live.
Environmental & due diligence
Environmental compliance support, technical due diligence for investors and insurers, and ESG assurance.
FAQ
Texas data center compliance questions
A Texas data center typically needs TCEQ air authorization for its backup generators and any on-site power plant, TPDES construction stormwater coverage, city zoning and building permits if inside city limits, and a large-load interconnection agreement under the PUCT's SB 6 rule. TCEQ has paused issuing data center permits since Sept. 21, 2026.
At the state level, Texas data centers deal mainly with Public Utility Commission of Texas (PUCT); ERCOT; Texas Commission on Environmental Quality (TCEQ); Texas Water Development Board (TWDB); Groundwater conservation districts; Comptroller of Public Accounts; TDLR / State Fire Marshal. Local approvals come from Cities (zoning, building codes, ETJ rules), Counties (roads, floodplain, fire code), and interconnection and service terms come from Oncor, CenterPoint, AEP Texas, TNMP, Austin Energy and CPS Energy, Co-ops.
Governor Abbott ordered an ERCOT/PUCT audit of the large-load queue (Aug. 3), mandatory TWDB water-use reporting (Sept. 14) and a halt on TCEQ data center permits (Sept. 21). The PUCT adopted its SB 6 large-load interconnection rule on Sept. 18, 2026, and the Attorney General opened a water-reporting investigation on Sept. 24.
The TCEQ permit pause acts as a statewide hold until the ERCOT audit ends, expected around Dec. 10, 2026. San Marcos banned data centers citywide in June 2026. Hood County rejected two moratoria, and Hill County rescinded its moratorium after a lawsuit.
SB 6 (2025) sets large-load interconnection standards, requires disclosure of backup generation and its deployment in grid emergencies, requires remote disconnect capability, and adds review of co-location with existing generation. The PUCT's Sept. 18, 2026 rule adds a $100,000 study fee and $50,000 per MW in security for loads of 75 MW or more.
Every U.S. data center must meet EPA Clean Air Act rules for stationary engines (NSPS Subparts IIII and JJJJ, NESHAP Subpart ZZZZ), Clean Water Act stormwater and wetlands requirements (including U.S. Army Corps Section 404 permits), SPCC plans for diesel storage over the federal threshold, EPCRA Tier II chemical reporting, OSHA construction and electrical safety standards, and FAA notice for tall structures and cranes. FERC and NERC rules shape large-load grid interconnection.
This page summarizes Texas data center requirements as of October 12, 2026 for general information. It is not legal advice. Confirm current requirements with the relevant agency or counsel before filing.
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Other states
Data center compliance guides by state
Texas
Development is effectively on hold through mid-December 2026: an ERCOT/PUCT large-load audit, mandatory water reporting and a TCEQ permit pause, alongside SB 6's new interconnection rule.