NAACP Warns Texas Data Center Audit Leaves Major Regulatory Loopholes, Demands Real Moratorium and Community Protections

FOR IMMEDIATE RELEASE

September 29, 2026

Contact: Chyna Fields, cfields@naacpnet.org 

WASHINGTON — The NAACP Texas State Conference and the NAACP Center for Environmental and Climate Justice have issued an open letter to Governor Greg Abbott, raising critical concerns over the state's current approach to regulating the rapid expansion of data centers across Texas. While recent executive directives halted state permitting pending an Electric Reliability Council of Texas (ERCOT) audit, the NAACP argues that the measure is an incomplete safeguard that fails to protect Texas families, water resources, and local air quality.  

The open letter details several systemic gaps in the state's temporary pause and audit parameters, noting that many of the largest, most resource-intensive projects can bypass state oversight entirely:  

• The Off-Grid Loophole: The current ERCOT audit applies strictly to facilities seeking grid interconnection. Data centers that generate their own power on-site — frequently utilizing fossil fuels — can move forward without disclosing water usage, air emissions, or community impacts to state regulators.  

• Exploitation of Minor Source Permits: At least 38 Texas data centers have avoided rigorous public review by securing "minor source" air permits from the Texas Commission on Environmental Quality (TCEQ). Intended for low-impact small businesses, this permit category has allowed facilities to deploy over 2,100 diesel generators without environmental impact studies, public notice, or public comment periods.  
• Compounding Texas's Water Crisis: With 77% of Texas experiencing drought conditions, existing data centers consume roughly 25 billion gallons of water annually — a figure projected to surge up to 161 billion gallons by 2030. Major industrial commitments in water-stressed regions, such as Nueces County and Fort Stockton, jeopardize agricultural needs and residential municipal supplies. 
• Grid Reliability and Economic Strain: Overwhelming demand from proposed data centers threatens grid stability and increases the risk of rolling blackouts during extreme weather events. Under current policies, elevated energy costs and infrastructure upgrade expenses risk being passed directly to everyday ratepayers.  

To address these vulnerabilities, the NAACP is urging the Governor's office, the Public Utility Commission (PUC), TCEQ, the Texas Water Development Board (TWDB), and ERCOT to institute a comprehensive moratorium on all data center development. 

The NAACP continues to call for mandatory public disclosure of all utility and environmental impacts, rigorous independent monitoring, and the adoption of our Frontline Framework to ensure community consent, clean energy prioritization, and environmental justice.  

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About NAACP

The NAACP advocates, agitates, and litigates for the civil rights due to Black America. Our legacy is built on the foundation of grassroots activism by the biggest civil rights pioneers of the 20th century and is sustained by 21st century activists. From classrooms and courtrooms to city halls and Congress, our network of members across the country works to secure the social and political power that will end race-based discrimination. That work is rooted in racial equity, civic engagement, and supportive policies and institutions for all marginalized people. We are committed to a world without racism where Black people enjoy equitable opportunities in thriving communities. 

NOTE: The Legal Defense Fund – also referred to as the NAACP-LDF - was founded in 1940 as a part of the NAACP but now operates as a completely separate entity.