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Texas data centers have used streamlined minor-source air-permit routes for thousands of on-site diesel generators, according to a 2026 Floodlight investigation. The routes are sometimes called “dry cleaner permits,” but that is shorthand: they are not permits reserved for dry-cleaning businesses. Critics say the state’s September 2026 pause on data-center permits may still leave questions about behind-the-meter power and cumulative pollution unresolved.
What the “dry cleaner permit” label means
Floodlight reported that at least 38 Texas data centers received minor air permits for on-site power since 2024. Those permits covered more than 2,100 backup diesel generators. The permit mechanisms identified in the reporting were permits by rule and standard permits—not a special permit formally called a “dry cleaner permit.”
The nickname refers to the customary scale of permit-by-rule use. Bruce Buckheit, a former EPA air-enforcement chief, told Floodlight that state agencies typically use the process for “small things that happen a lot,” such as gas stations or dry cleaners, so they do not have to repeat the same review for common sources. The controversy is whether streamlined minor-source routes remain appropriate when used for power equipment at data-center scale.
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Floodlight reported that these permit paths did not require environmental studies, public notice, or public-comment periods. TCEQ, by contrast, said it issues permits that comply with applicable state and federal rules, including applicable public-participation requirements. The disagreement is about how the requirements apply to these permit routes; the reporting does not establish that the permits violated them.
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How many generators and how much pollution are involved?
Floodlight’s 2026 analysis said the permits it identified covered nearly 2,500 tons of nitrogen oxides (NOx) per year. That is a permit-based total, not a measurement of emissions while the generators are running. The generators are intended for emergency use, but Floodlight reported that permits also allow testing and maintenance operation.
More than half of the data centers in Floodlight’s analysis submitted NOx estimates just below thresholds that would trigger more detailed review and public input, the investigation reported. A figure close to a threshold can raise questions about how the review process works, but it does not by itself show that an operator intended to evade review or broke a rule.
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Examples of permits near review thresholds
| Facility | Reported NOx figure | Reported threshold | What the figure represents |
|---|---|---|---|
| CyrusOne data center in Whitney | 249.1 tons per year | 250 tons | Company estimate, as reported by The Texas Tribune in 2026 |
| Vantage facility outside San Antonio | 99.8 tons per year | 100 tons | Permitted amount, as reported by Floodlight and The Texas Tribune in 2026 |
These are different kinds of figures: the Whitney number is a company estimate, while the Vantage number is a permit figure. Neither is a measurement of actual emissions. Floodlight and The Texas Tribune reported the thresholds as points at which more detailed review and public input would be required.
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What the Stargate project shows—and what it does not
Floodlight reported that OpenAI’s Stargate campus in Abilene received minor permits covering 10 gas-fired turbines and 62 backup diesel generators. Developers later sought a major permit for an expansion involving 41 additional turbines and 18 additional generators.
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In its reporting, Floodlight said developer Crusoe described the turbines as backup power even though the permit allowed continuous use. That distinction is specific to this project. The reported permit terms do not establish how often the turbines have operated, and the later major-permit application should not be confused with a finding that the earlier permits were unlawful.
What Abbott’s September 2026 pause covers
On September 21, 2026, Gov. Greg Abbott directed the Texas Commission on Environmental Quality (TCEQ) to stop issuing data-center permits until the Electric Reliability Council of Texas (ERCOT) and the Texas Water Development Board complete audits. The Texas Tribune reported that the audits would examine electricity and water use, effects on communities, project ownership, and use of tax breaks. Abbott’s directive was quoted as saying: “Until they do, TCEQ will issue no permits sought by data center projects.”
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The Tribune reported that the pause appeared to address a potential oversight gap for projects that generate power behind the meter—that is, on-site rather than through a direct grid connection—and might otherwise bypass grid-connection review. The reported scope of the order is a pause on permits sought by data-center projects; it is not evidence that the audits will resolve every air-permit question.
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Why critics say the pause may not be enough
The NAACP Texas State Conference and the NAACP Center for Environmental and Climate Justice argued that the state’s measures remain too focused on grid-connected projects and do not adequately address cumulative pollution, water use, and noise. Their criticism is that reviewing grid demand and project-level impacts may miss the combined burden of facilities operating on-site generators, particularly where those facilities are behind the meter.
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The available reporting does not establish whether the audits will assess cumulative air pollution from all on-site generation or how TCEQ will handle data-center permit applications after the audits. Nor does the reported permit total establish actual emissions or a specific local health outcome. The central unresolved issue is whether Texas’s review will account for the scale and combined effects of data-center power generation, rather than only the permit status of individual pieces of equipment.
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