Texas Gov. Greg Abbott says data center builders ‘dug their own grave’ with public opinion
Texas Governor Greg Abbott, once a supporter of data center development, has criticized data center builders for failing to win community support, leading to widespread public opposition. He has initiated audits on new data center projects, aims to phase out tax incentives, and seeks to shift the full cost of electrical infrastructure to developers in Texas. This reflects a broader trend among US politicians, with governors in Pennsylvania and New York also imposing new restrictions or moratoriums on data center construction.
Texas Governor Greg Abbott, previously a staunch advocate for data center development, now states that companies have "dug their own grave" due to their failure to secure local community support, which has fueled public opposition to new construction. Speaking on ABC's "This Week," Abbott emphasized the critical importance of gaining local backing for these large-scale AI power complexes, suggesting that the industry's rush has led to a deserved backlash.
Abbott's position has significantly shifted, as detailed in an Axios report. He has recently paused new data center construction in Texas for audits and directed state regulators to require data centers to bear the full cost of the electrical infrastructure they demand. Furthermore, he announced intentions to phase out tax incentives for the sector. He also highlighted that less than 10% of data center companies responded to a state request for information on future power demand.
This change in stance by Abbott is indicative of a wider political trend across the United States. Pennsylvania Governor Josh Shapiro, who once lauded a $20 billion Amazon data center investment, has now implemented what he calls the "strictest guardrails in the nation" for the sector. Similarly, New York Governor Kathy Hochul imposed a one-year moratorium on "hyper-scale" data centers last month. Public sentiment reflects this shift, with a June/July Annenberg Public Policy Center survey indicating that six in ten Americans now oppose new data center construction in their communities, leading over 500 US jurisdictions to halt such projects.
The growing backlash is becoming a key political issue, with the Senate GOP campaign arm privately warning AI companies that negative public perception could harm the party's prospects in crucial Ohio races. In response, tech giants are reportedly attempting to improve their public image through community meetings and by moderating their predictions regarding AI's impact on job markets.