Trump Warns Texas Data Center Pushback Is A ‘Mistake,’ Says Industry Could Eclipse Oil
Former President Donald Trump criticized Texas's resistance to data centers, calling it a mistake and arguing the industry could surpass oil in economic importance. This follows Governor Greg Abbott's order to pause pending data center interconnection requests to ERCOT due to concerns about the electric grid's reliability and stability. Abbott also directed regulators to require data centers to fully fund necessary electric infrastructure.
Former President Donald Trump has cautioned Texas against its growing resistance to data center development, describing the stance as a "mistake" that could cause the state to lose out on an industry potentially larger than oil. Trump's remarks, made in an interview with Punchbowl News, highlight his belief in the economic importance of data centers, contrasting with recent actions taken by Texas Governor Greg Abbott.
Governor Abbott recently ordered a pause on pending requests to connect new data center projects to the Electric Reliability Council of Texas (ERCOT) power grid. This directive came amidst concerns that the rapid growth of the data center industry could jeopardize the reliability and stability of the Texas electric grid. Abbott's spokesperson, Andrew Mahaleris, stated that fewer than 10% of data centers had provided requested information on their power and water usage, underscoring the state's prioritization of its residents' needs over unchecked data center expansion.
In addition to the pause, Governor Abbott directed the Public Utility Commission of Texas and ERCOT to audit all data centers undergoing the interconnection process. He also previously called for prohibiting AI data centers in rural areas unless developers can independently secure their own power and water, and ensure resident protection. Both Trump and Abbott, however, align on the principle that data center developers should fully fund the new generation and grid infrastructure their facilities require, preventing these costs from being shifted to ordinary ratepayers.