What the New Trump AI Executive Order Really Means for Texas – A Quick Breakdown

by | Aug 11, 2025 | Natural & Cultural Resources, Renewable Energy

What the New Trump AI Executive Order Really Means for Texas – A Quick Breakdown

The new Trump administration’s artificial intelligence (AI) infrastructure executive order is getting a lot of attention and for good reason. There is tremendous AI activity in Texas and any significant policy change from the federal government could affect how and where AI projects are built. But what does it actually mean for Texas?

First, here is a brief summary of the content in the Executive Order “Accelerating Federal Permitting of Data Center Infrastructure”:

  • Policy: Promote construction of AI Data Centers by targeted Federal actions.
  • Infrastructure Covered: Defines Data Center as more than 100 megawatts of new load dedicated to AI. Includes the Data Center, power sources, and transmission lines that are summarized as “Qualifying Projects”.
  • Modes of Action: The Executive Order initiates several separate actions aimed at expediting permitting for new facilities through various agencies and policy changes such as:
  • Financial Support: Promise of future financial incentives such as tax credits and loans.
  • NEPA-Related:
    • Promoting CatEx: Directs agencies to identify existing categorical exclusions to simplify NEPA process, when NEPA applies.
    • Clarifying Limits to NEPA: Projects with less than 50% federal financial assistance are not “major Federal actions.”
  • FAST-41: Certain projects may qualify for expedited review under existing laws.
  • Changes at EPA: Directs EPA to expedite permitting at sites regulated under Clean Air Act, Clean Water Act, Superfund and other regulations. It promotes development of Data Centers on Brownfields and Superfund sites.
  • Changes to Endangered Species Act enforcement: Directs the initiation of programmatic consultation under Section 7 of the ESA, which is aimed at simplifying compliance with ESA at Qualifying Projects.
  • Changes to waters of the U.S.: The order may result in a Nationwide Permit being developed specific to Qualifying Projects.
  • Federal Land Availability: The order takes steps to facilitate use of certain federal lands for Qualifying Projects.

The Executive Order could have an impact on Data Centers and supporting infrastructure in Texas.

WOTUS in Texas: Opportunity to Watch

The order asks agencies to consider whether a new Nationwide Permit (NWP) for Qualifying Projects is warranted. This effort could result in an NWP that does not require a Pre-Construction Notification (PCN). That could simplify permitting projects in Texas, and elsewhere, avoiding review by the Amry Corps of Engineers.  This change could reduce cost, timelines, and uncertainty during the permitting process, but no such NWP has been issued yet. Nationwide permits are already going through their re-authorization that is due around March 2026.

NEPA: No Major Effect in Texas

The order also touches on streamlining National Environmental Policy Act (NEPA) reviews. But because Texas has very little federal land, this won’t move the needle much for in-state projects. It is a safe assumption that most Qualifying Projects will not receive more than 50% of their funding and will not be considered “major Federal actions” potentially subject to an Environmental Impact Statement.

ESA in Texas: Opportunity to Help

There are several species in Texas that are federally listed as threatened or endangered and more that are proposed to be listed. Programmatic consultation can provide both simplicity and assurances when projects may have an impact on these species or their habitats.

Brownfields in Texas: Space to Watch

Texas has a number of Brownfields. Future changes to policy could produce incentives for projects planned at Brownfield sites in Texas and beyond.

Grid Connection = Big Opportunity

Possibly the biggest Texas takeaway:
The executive order supports fast-tracking transmission lines and power infrastructure to serve AI data centers. In a state like Texas, where energy is king and ERCOT operates its own grid, this could open doors for new power plant projects and transmission development.

Key Takeaways:

  • Qualifying Projects extended beyond the Data Center to the power supply.
  • No immediate changes are anticipated, but these steps could lead to improvements in funding and efficiencies for permitting Data Centers and their power supply.
  • No Major changes for WOTUS, NEPA, or ESE are expected, but some modest improvements may be on their way.
  • The case for development at Brownfields could improve.
  • A future data center-specific NWP could simplify things in 2026.
  • Power grid and transmission support = huge opportunity for Texas energy developers.

This Executive Order is only a first step, but it could bear fruit soon. It signals strong support for the booming Data Center market in Texas. More federal streamlining could mean fewer delays, faster builds, and expanded markets but the details in 2026 will be key.

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