Trump Critiques Texas Data Center Approval Pause, Citing Economic Impact

In an interview with Punchbowl News, President Donald Trump expressed his disapproval of Texas's recent decision to pause approvals for new data centers. He stated, "I saw Texas the other day sort of is against data centers. I think it's a mistake."

Trump emphasized the potential of the data center industry, suggesting it could surpass the oil sector in significance, saying, "For Texas to say no to data centers is a mistake in the sense that it could be bigger than oil."

The pause was announced by Governor Greg Abbott on August 3, aiming to halt new data center approvals until state agencies can conduct audits. These audits are intended to evaluate tax breaks, power and water consumption, cooling methods, and community impact.

Abbott's spokesperson, Andrew Mahaleris, noted that the decision was prompted by a lack of information from the industry, stating, "Simply put, Texans must come first." He mentioned that fewer than 10 percent of data centers had provided the requested power and water usage figures.

Currently, ERCOT is monitoring over 1,800 projects, which represent more than 474 gigawatts of requested capacity, a figure that exceeds the grid's record peak demand. Abbott has indicated that approximately 90 percent of new connection requests are from data centers. No changes to the pause have been announced by either the governor's office or the White House.