Governor Greg Abbott’s August 3 and September 21, 2026 directives created a de facto statewide pause on new data center approvals by ordering ERCOT and the PUCT to audit the 474 GW interconnection queue—roughly 90 percent data centers—while directing TCEQ to halt all environmental permits until that review concludes. The moves respond to grid reliability risks, water use for cooling large-scale AI and hyperscale facilities, and local opposition over incentives and ratepayer impacts. ERCOT’s State and Community Impact RFI responses are due October 12, with the Batch Zero Eligibility Verification Report targeted for December 10; TCEQ must confirm compliance by October 19. Traders are watching whether the executive pause satisfies market criteria for “enactment” or if a formal legislative ban emerges in the 2027 session, alongside any post-election shifts in enforcement.