President Trump Calls Texas Data Center Opposition a “Mistake”

By Taylor Goldenstein / The Texas Tribune

WASHINGTON — President Donald Trump this week criticized Texas for being anti-data centers, just days after Gov. Greg Abbott paused industry-wide approvals until the companies provide the state with more information on things like power and water use.

“I saw Texas the other day sort of is against data centers,” Trump said in a nearly hourlong sit-down interview with Punchbowl News released Friday. “I think it’s a mistake. And I’m not taking positions, I just think it’s a mistake, because there are other communities that want it. When a community wants it, it means a lot of money is going to come into that community.”

Abbott’s spokesperson in a statement Friday defended the policy move as necessary because less than 10% of data centers responded to the state’s requests for them to report their power and water usage.

“Many are unaware that (the Electric Reliability Council of Texas) is tracking a more than 500% increase in peak electricity demand. This unprecedented growth could endanger the reliability and stability of the Texas electric grid,” Andrew Mahaleris said. “The Governor’s pause requires data centers to provide (Public Utility Commission of Texas) and ERCOT with the required information for them to make fully informed decisions. Simply put, Texans must come first.”

The moratorium, which Abbott announced Monday, will require state regulatory agencies to audit proposed data centers seeking connection to the state’s electric grid and find out whether they’re receiving tax breaks, how much power and water they will use, what kind of cooling they will use, what efforts they’ve made to reduce community impacts, and who owns the facilities.

Any projects that fail Abbott’s ordered “comprehensive verification and audit” should be denied connection to the grid, the governor said.

The move was in contrast to the Republican’s typical pro-business stature, underlining how the data center debate has put Texas conservatives between Trump and angry constituents in rural, unincorporated areas where most planned data centers are set to be located. 

Texans have mobilized across the state to oppose the new developments, airing concerns that the facilities will drain local water supplies, drive up electric bills and cause noise, light and air pollution.

Abbott’s announcement came after he had previously been bullish about the industry, calling Texas the “epicenter of AI development” in November when he unveiled Google’s $40 billion investment in the state that included data center facility development.

The three-term governor’s Democratic opponent, Gina Hinojosa, has made greater oversight of data centers a key piece of her campaign.

“Abbott’s call for a ‘pause’ could be for one day – and no one buys it,” she said in a statement this week. “He’s taken millions from data center CEOs while giving Texans lip service to non-existent restrictions.”

“For Texas to say no to data centers is a mistake in the sense that it could be bigger than oil,” Trump added.