Trump criticizes Texas pause on new data center approvals

President Donald Trump has criticized Texas Governor Greg Abbott’s decision to pause approvals for new data center projects seeking connection to the state’s electric grid, calling the move a “mistake.” In a recent interview, Trump argued that data centers are “tremendously important for the economics” and suggested the industry could eventually become larger than the oil and gas sector in Texas.

Governor Abbott recently ordered the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to review pending projects. The directive requires data centers to disclose plans to ensure they pay for their own infrastructure, provide their own power, reuse water, reduce electricity costs for residents, and avoid disturbing local neighborhoods.

While data centers have seen significant growth in Texas due to land availability and business-friendly regulations, they have faced community opposition due to high electricity and water consumption, noise concerns, and potential pressure on the power grid. Trump defended the facilities, noting that many are now generating their own electricity on-site and could potentially return excess power to the grid.