AUSTIN, Texas — Gov. Greg Abbott has moved to temporarily halt new data centers from connecting to Texas’ power grid unless companies first provide the state with detailed information about their expected electricity and water use, a step that has drawn criticism from President Donald Trump.
In an interview with Punchbowl News, Trump said Abbott’s new moratorium is “a mistake.” Trump added, “I’m not taking position. I just think a mistake…When a community wants it, it means a lot of money is going to come into that community.”
On Monday, Abbott paused approvals for any data center seeking to connect to the state’s power grid, citing reliability concerns. Abbott’s office said ERCOT is tracking a more than 500% increase in peak electricity demand.
Under the moratorium, companies must share information with the state about a proposed facility’s electricity and water use. If a company does not meet the governor’s requirements, the data center will be kept off the grid.
In a statement from the governor’s office, officials said in part: “Simply put Texans must come first.”
Josh Blank, Research Director with the Texas Politics Project, said the disagreement places Abbott in a difficult political position within his party.
“It forces the Republican Governor of Texas to take what can be seen as an anti-development or anti-business position, even though at this point it’s just trying to sort of get a rein in on this issue of data centers,” Blank said.
Blank also pointed to public opinion as the November election approaches.
“A June UT Texas Politics Project polling showed a majority of Texas voters opposed to the construction of data centers in their community,” he said.
RELATED: Trump calls Texas’ data center opposition a “mistake”
The Texas Data Center Map shows 536 facilities statewide, including 66 in Austin.
Despite Trump’s criticism, Blank said Abbott is likely to stick with his decision.
“Governor Abbott is very well-informed when it comes to the views of Texans, and his decisions about data centers and the movements he’s made so far reflect a deep understanding of what the politics of this look like,” Blank said.
So far, there has been no indication Abbott plans to change course following the president’s criticism.