In an interview with Punchbowl News, President Donald Trump expressed his disapproval of Texas's decision to pause approvals for new data centers, calling it a mistake. He stated that rejecting data centers could hinder economic growth, suggesting that the industry has the potential to surpass the oil sector in importance.
Trump emphasized the significance of data centers for local economies, noting that they can bring substantial financial benefits to communities. He remarked that if he were in a gubernatorial position, he would actively seek to attract such projects, even proposing tax cuts to do so. The president warned that slowing down development could benefit foreign competitors.
The pause was announced by Governor Greg Abbott on August 3, aimed at allowing state agencies to conduct audits on data centers seeking to connect to the Electric Reliability Council of Texas (ERCOT) grid. These audits will evaluate various factors, including tax incentives and resource consumption.
An Abbott spokesperson indicated that the decision was made due to a lack of information from the data center industry, with fewer than 10 percent of facilities providing the necessary power and water usage data. ERCOT is currently monitoring over 1,800 projects, which represent a capacity demand exceeding five times the grid's peak record.
As of now, there has been no update from the governor's office or the White House regarding changes to the Texas order.
