President Donald Trump has expressed disapproval of Texas's recent decision to pause approvals for new data centers. In an interview with Punchbowl News, Trump stated that this move could hinder the state's economic potential, suggesting that the data center industry could surpass oil in significance for Texas.
The pause was announced by Governor Greg Abbott on August 3, aiming to halt new data center connections to the ERCOT grid until state agencies conduct audits. These audits will evaluate factors such as tax incentives, resource consumption, and community impact. However, the order does not prohibit data centers that generate their own power on-site.
Abbott's spokesperson, Andrew Mahaleris, indicated that the decision was prompted by a lack of information from the industry, noting that fewer than 10 percent of data centers had submitted required data on power and water usage. ERCOT is currently monitoring over 1,800 projects, with data centers accounting for about 90 percent of new connection requests.
Projections estimate that data center water usage in Texas could reach between 29 billion and 161 billion gallons annually by 2030.
No changes to this order have been announced by either the governor's office or the White House.
