Trump calls Texas' data center opposition a "mistake"

(Texas Tribune) - President Donald Trump this week criticized Texas for being anti-data centers, just days after Republican Gov. [KWTX-TV News 10]

A policy dispute over artificial intelligence infrastructure development has created an unusual political rift in Texas, pitting President Donald Trump against Republican Gov. Greg Abbott over the state's future in the tech sector.

Abbott announced Monday that he would halt approvals for new data center projects pending a comprehensive state audit of the facilities. The moratorium requires companies to submit detailed information about their electricity consumption, water usage, cooling methods, tax incentive status and ownership structure before receiving permission to connect to Texas's power grid. State regulators must verify the information and determine whether projects should be denied grid access. The decision represented a sharp reversal for Abbott, who previously promoted Texas as the nation's artificial intelligence hub after Google pledged a $40 billion investment in the state that included data center development.

Residents across Texas have mobilized against the proposed facilities, particularly in rural and unincorporated communities where most projects are planned. At city council meetings statewide, constituents have voiced concerns about depleted water resources, elevated electricity rates and environmental effects including noise and air quality degradation. The grassroots opposition has evolved into a bipartisan issue, complicating Abbott's political calculation ahead of his reelection campaign.

Trump weighed in Friday through an interview with Punchbowl News, characterizing Texas's resistance to data centers as misguided. "I think it's a mistake, because there are other communities that want it," Trump said, adding that data centers could generate substantial economic activity comparable to the oil industry's impact on the state. The president indicated he was not adopting a formal position but offered his view that communities benefiting from such development outweighed broader concerns.

Abbott's office responded swiftly to Trump's criticism, issuing a statement emphasizing grid stability as justification for the pause. Spokesman Andrew Mahaleris noted that the Electric Reliability Council of Texas has documented a more than 500 percent surge in peak electricity demand, threatening the grid's reliability. "Texans must come first," Mahaleris said, explaining that the audit requirement ensures state agencies make decisions based on complete data about facility impacts.

Southern Methodist University political science professor Matthew Wilson noted the political complexity Abbott faces. While Trump's argument carries weight from national economic and security perspectives, public sentiment appears to align with Abbott's caution. "He's trying to triangulate the issue to place himself in a kind of middle ground," Wilson said, referring to Abbott's balancing act between national interests and constituent concerns as the November election approaches.