Trump Calls Texas’ Data Center Opposition a “Mistake”

President Donald Trump this week criticized Texas for being anti-data centers, just days after Republican 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 office and campaign did not immediately respond to a request for comment Friday.

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 The Texas Tribune has reported 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 “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.”

Trump went on to say that data centers are “tremendously important for the economics.”

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

Disclosure: Google and Punchbowl News have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in The Texas Tribune’s journalism. Find a complete list of them here.

This article first appeared on The Texas Tribune.

Topics Texas