Trump says Texas pause on new data centers is a mistake
Athens, Texas, has paused its plans to create new local rules for data centers, awaiting finalized state guidelines after Governor Greg Abbott ordered a statewide halt on new data center power grid connections. Former President Trump criticized this move, deeming it a mistake, while some residents voice concerns about increased energy costs and water usage associated with data centers.
Athens city officials have suspended their plans to create new local zoning rules for data centers, choosing to await finalized state guidelines. This pause follows Governor Greg Abbott's executive action, which imposed a statewide halt on approving new data center connections to Texas's power grid. City staff had been developing supplemental zoning ordinances for several months, with public input expected before final decisions.
The state regulations are still under development, and the Texas legislature is anticipated to address data center rules in 2027, prompting Athens leaders to defer their own requirements until further guidance is available. In response to these developments, former President Donald Trump publicly criticized Texas's decision to pause new data center connections during an interview with Punch Bowl News. He argued that the state should continue to welcome the industry, drawing a comparison between its potential economic impact and that of the oil sector.
While supporters highlight the potential for billions of dollars in investment and job creation in Texas, some residents have voiced concerns regarding the industry's contribution to higher energy costs, its significant water consumption, and broader community impacts.