'Bigger than oil': President Trump calls data center pushback in Texas
President Trump criticized Texas's opposition to data centers, advocating for their economic benefits. This comes as Governor Abbott ordered an audit of data centers connecting to the state's power grid, citing concerns about reliability and water supply amidst growing community opposition and potential moratoriums.
President Donald Trump has entered the debate surrounding data center development in Texas, criticizing the state's "sort of against data centers" stance as a mistake. Trump argued that data centers could bring significant economic benefits to communities, potentially surpassing the oil and gas industry in importance. His comments follow an announcement by Texas Governor Greg Abbott, who called for a sweeping audit of data centers seeking connection to the state's power grid, a move that has effectively paused such projects.
Governor Abbott's press secretary, Andrew Mahaleris, stated that the audit is a priority to protect Texans' safety and quality of life, emphasizing concerns over the power grid's reliability and stability due to a more than 500% increase in peak electricity demand from data centers. Mahaleris also noted low compliance from data centers in reporting power and water usage, as required by Texas law, and clarified that the audit necessitates full information disclosure to regulatory bodies like the Public Utility Commission of Texas (PUCT) and ERCOT.
The article highlights a broader wave of community opposition across Texas, with residents raising concerns about water and electricity consumption. This backlash has led some local officials, including those in Red Oak where a DataBank campus is under construction and has faced protests, to consider data center moratoriums. Despite the opposition, officials in some areas, like Red Oak, still view data centers as a source of economic prosperity.