President Donald Trump expressed disapproval of Texas's decision to pause data center approvals, calling it a mistake in an interview with Punchbowl News. He emphasized the industry's potential, stating that it could surpass the oil sector in significance for the state. Trump pointed out that data centers are crucial for local economies, suggesting that communities could see substantial financial benefits from these projects.
The pause was announced by Governor Greg Abbott on August 3, halting new data center approvals that seek to connect to the Electric Reliability Council of Texas (ERCOT) grid. The state plans to conduct audits to evaluate various factors, including tax incentives and resource consumption, before allowing new connections.
Abbott's spokesperson noted that the decision was made due to a lack of information from the industry, with fewer than 10 percent of data centers providing the required power and water usage data.
Currently, ERCOT is monitoring over 1,800 projects that represent more than 474 gigawatts of requested capacity, significantly exceeding the grid's peak demand. Abbott has indicated that about 90 percent of these requests originate from data centers. Projections suggest that water usage from data centers in Texas could reach between 29 billion and 161 billion gallons annually by 2030.
No changes to the pause have been announced by either the governor's office or the White House.
