President Trump criticized Texas Gov. Greg Abbott’s decision to pause approvals for new data center construction, calling it a “mistake.”

“New data centers are being paused,” Abbott said.

Abbott said data centers must disclose their plans to:

  • pay their own way
  • provide their own power
  • reuse their own water
  • reduce the cost of electricity
  • & avoid disturbing neighborhoods

Newsweek shared further:

The president made the comments in a nearly hourlong interview with Punchbowl News released Friday, just days after the Republican governor ordered a pause on approvals for data centers seeking connections to the Texas electric grid, as reported by The Texas Tribune.

“I saw Texas the other day sort of is against data centers,” Trump said. “I think it’s a mistake. And I’m not taking positions, I just think it’s a mistake, because there are other communities that want it. When a community wants it, it means a lot of money is going to come into that community.”

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He later described data centers as “tremendously important for the economics,” adding that the industry “could be bigger than oil” for Texas.

Data centers have become a growing source of concern in communities across the country. Facilities supporting cloud computing and artificial intelligence (AI) require large amounts of electricity and often significant quantities of water for cooling. Critics have also raised concerns about noise, pressure on power grids, rising electricity costs, and the environmental impacts associated with meeting growing energy demand.

“I don’t think they’re unsightly. I mean, I’m looking at some of these data centers, the most incredible buildings I’ve ever seen,” Trump said.

Watch below:

According to Fox News, the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) said Abbott’s directive ordered them to “review pending data center projects and deny grid connection requests for facilities that fail to meet state requirements.”

Fox News has more:

The move comes as Texas sees a surge in demand from artificial intelligence and cloud computing facilities. ERCOT told Fox News Digital that about 90% of the 474 gigawatts of projected large-load interconnection requests currently under review are from data centers — more than five times the state’s record peak electricity demand.

“Our top priority is to protect Texans’ safety and quality of life,” Abbott said in a statement, according to Axios. “Texans must come first.”

As part of the review, Abbott directed regulators to gather additional information from companies seeking grid connections, including whether facilities plan to generate some of their own electricity, as well as their projected annual and peak electricity demand, water consumption and water sources.

The directive follows Abbott’s recent push to tighten oversight of the rapidly expanding data center industry. Last week, he said AI data centers looking to build in Texas should bring their own power, reuse their own water and lower electricity costs for residents.

Texas has become one of the nation’s largest hubs for data center development, thanks in part to generous tax incentives. The Texas Tribune previously reported the state provides more than $1 billion annually in tax breaks for qualifying projects.

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