Texas Democratic gubernatorial nominee Gina Hinojosa (D) criticized Gov. Greg Abbott (R) after a new watchdog report found state regulators continued processing data center-related permits following his September directive to halt approvals.
FracTracker Alliance and Public Citizen identified 35 permitting actions by the Texas Commission on Environmental Quality between September 21 and October 16. The actions included advancing applications for gas-fired power plants and generators, approving construction stormwater coverage, and issuing notices related to air permits.
Abbott directed the agency to halt data center permits while state officials evaluate the industry's effects on electricity reliability and water resources. His office and TCEQ have maintained that the agency paused permit issuance, though the watchdog groups argue that continued reviews and other regulatory actions undermine the directive.
"Greg Abbott's tough talk on data centers is nothing more than an election year stunt," said Hinojosa. "Abbott invited these data centers to Texas with the richest tax breaks in the country, and then pretended to pause approvals for political gain."
She accused Abbott of encouraging data center development through tax incentives before announcing the pause and argued that the state needs legislation rather than executive directives to address the industry's growth.
The dispute comes amid scrutiny of Abbott's campaign fundraising from data center interests. A Texas Tribune analysis published October 19 found Abbott received about $9 million from data center-related donors since July 2025, including $2.8 million after announcing the pause.
Texas has at least 596 operating or planned data centers, according to an analysis published in September. The publication has also reported that the state's data center sales tax exemption is projected to cost billions in foregone revenue.
Hinojosa also questioned the timing of the state's review, pointing to expectations that the Electric Reliability Council of Texas would complete its data center audit by December.
