Trump calls Texas’ data center crackdown a ‘mistake’

Trump calls Texas’ data center crackdown a ‘mistake’

News ClipE&E News by POLITICO·TX·8/7/2026

Former President Donald Trump criticized Texas Governor Greg Abbott's recent order to pause new data center approvals, calling it a "mistake." Trump argued that data centers are economically vital and other communities will seek to attract them. Governor Abbott's office responded that the move is necessary due to "unprecedented" electricity demand growth impacting the state's power grid.

moratoriumelectricitygovernment
Gov: President Donald Trump, Texas Gov. Greg Abbott, state’s power regulators

Former President Donald Trump criticized Texas Governor Greg Abbott's directive to temporarily halt new data center approvals in the state, labeling it a "mistake." In an interview with Punchbowl News, Trump emphasized the economic importance of data centers, suggesting they could be "bigger than oil" for the state and warning that other communities would capitalize on Texas's reluctance. He refrained from mentioning Governor Abbott by name but clearly referenced the state's recent actions.

Governor Greg Abbott had previously ordered Texas power regulators to pause all new data center approvals pending an audit of projects seeking to connect to the state's electricity grid. This action was prompted by concerns over "unprecedented" electricity demand growth, which his press secretary stated could endanger the stability of the Texas power grid. The state's move represents a de facto moratorium on new data center developments, drawing a rare rebuke from the former president who has historically enjoyed strong support in Texas.