Texas Gov. Greg Abbott: AI Data Centers 'Dug Their Own Grave'

Texas Gov. Greg Abbott (R) says AI data center companies “dug their own grave” by failing to win support from the communities where they’re building. It's a stark change from nearly a year ago, when Abbott called Texas the “epicenter of AI development." “Gaining the support of people in local communities is essential,” Abbott told @abcnews on Friday. “They basically dug their own grave… and that’s why they got the backlash they deserve.” A recent poll found 71% of Americans oppose building a new data center in their community. In June, Abbott directed state regulators to make data centers pay the full cost of the electric infrastructure they require and called for phasing out tax incentives. He has also directed regulators to more closely review projects that would want to connect to the state’s power grid. Most data centers rely on existing electrical grids for their energy-intensive operation, the same grid used to power homes and businesses. AI-focused “hyperscale” data center can use as much power as 100,000 homes or more, according to the Lincoln Institute of Land Policy. As more power-hungry data centers become needed for expanding AI use, it's driving up consumer electricity costs. Fossil fuel companies and data center operators are teaming up to build independent power systems, but that can take years. Some are also turning to renewables. And while data centers bring billions of dollars in investment and tax revenue to local communities, critics also point to their heavy water use, industrial-scale construction, and relatively few permanent jobs. The U.S. has more than 3,000 data centers, with another 1,900 expected by 2034 — many in rural areas. Some of the largest span more than 1 million square feet, roughly the size of 17 football fields.