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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →No. Texas’s data-center pause has not stopped every construction site. CyrusOne’s SAT14A facility near Castroville, west of San Antonio, had begun construction by October 6, 2026, according to the San Antonio Current. The key distinction is that the pause covered certain state permits, while the project had a construction registration. A registration, an environmental permit, permission to connect to the electric grid, and local land-use approval are separate matters.
Why construction at SAT14A continued
The San Antonio Current reported that SAT14A is a 460,000-square-foot CyrusOne data center on U.S. Highway 90 in Medina County, near Castroville. It said construction had begun and reported that the project registered with the state on July 16, 2026. The article’s explanation, citing Colocation Scout founder Cody Swift, is that the state’s pause applied to permits sought from the Texas Commission on Environmental Quality (TCEQ), not to construction registrations such as SAT14A’s.
Swift said the hold covered TCEQ air and water permits for projects still waiting, including air permits for backup generators. That does not establish that SAT14A has every approval it may need at every stage. It explains why a permit pause does not, by itself, mean workers must stop physical construction at a site operating under an existing registration.
The San Antonio Express-News reported the facility was planned for 3397 U.S. 90 West, with a project cost of $500 million and an expected completion date of June 2027, based on a Texas Department of Licensing and Regulation filing. That date is an estimate, not confirmation that the facility will open then.
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What the Texas actions do—and do not—cover
There were two distinct state actions in 2026: an August review of grid-interconnection requests and a later pause on TCEQ permits. Neither should be described as a blanket order halting all data-center construction in Texas.
| Process | Authority and timing | What it affects | What it means for a project already being built |
|---|---|---|---|
| Environmental permits | TCEQ, under Gov. Greg Abbott’s September 21, 2026 direction | TCEQ permits sought by data-center projects while audits were underway, including air and water permits | The reported hold is on permits; it is not a general stop-work order for every site. SAT14A’s reported construction registration was distinct from these permits. |
| Grid interconnection review | Public Utility Commission of Texas (PUCT) and Electric Reliability Council of Texas (ERCOT), under Abbott’s August 3, 2026 direction | Review of data centers seeking grid interconnection, including information on tax benefits, power use and generation, water and cooling, community impacts, and ownership | The direction said projects that failed the stated requirements should be denied grid connection. It is a separate question from whether construction is underway. |
| City land-use rules | San Antonio city government; proposals were under discussion in August 2026 | Potential development restrictions within city limits, including location and the Edwards Aquifer Recharge Zone | City rules do not automatically govern a site outside the city limits. The Castroville-area project was reported to be in an unincorporated area. |
In September, Abbott said TCEQ would issue no permits sought by data-center projects until the ERCOT and Texas Water Development Board audits were completed. The Texas Tribune described this as an environmental permitting pause. The separate August direction asked PUCT and ERCOT to examine projects seeking grid connections and said projects that did not meet the stated requirements should be denied interconnection.
Why the grid review was launched
The scale of requests was one concern raised in the August coverage. The Texas Tribune reported that ERCOT’s interconnection queue contained more than 1,800 projects representing over 474 gigawatts—more than five times the grid’s record peak demand at the time. Abbott said approximately 90% of new power requests were from data centers. These are figures reported in 2026, not live October totals.
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The Tribune also identified at least 335 operating data centers and at least 248 planned in Texas in 2026, while noting there was no state or federal database of facilities. In a separate September report, it said as few as 28% of data centers had responded to the state’s water-use survey. The figures help explain the attention to power and water use, but do not determine the status of any individual construction site.
Could San Antonio stop the Castroville project?
The San Antonio Current described SAT14A as outside San Antonio in an unincorporated area. On that account, a San Antonio city moratorium or zoning rule would not reach this site simply because it is near the city. Its location in Medina County, rather than within city limits, is the relevant distinction.
San Antonio was separately considering rules for data centers within city limits. August 25 coverage described proposals involving where facilities could be developed and the Edwards Aquifer Recharge Zone, along with discussion of a temporary moratorium process and possible exemptions. That reporting does not establish what rules the city ultimately adopted after August, or whether any particular city rule would apply to a project within its jurisdiction.
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What remains uncertain about SAT14A
The available reporting establishes that construction had begun and attributes the project’s construction-registration status to the San Antonio Current’s reporting and Swift’s explanation. It does not include the underlying registration document. Nor does it establish what approvals may be required at later phases, whether the state audits had concluded by October 7, 2026, or whether SAT14A could face other permitting or utility conditions.
For a construction project, the practical distinction is between permission or registration to carry out work, environmental permits, utility interconnection, and local development rules. A pause in one of those processes does not automatically suspend the others; the project’s specific location, existing approvals, and remaining requirements matter.
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