President Donald Trump has expressed his disapproval of Texas's decision to pause approvals for new data centers that want to connect to the ERCOT grid. In an interview with Punchbowl News, he stated that this move could hinder the industry's growth potential, which he believes could surpass that of oil in Texas.
Trump emphasized the economic benefits of data centers, noting their importance to communities. He argued that if he were a governor, he would actively seek such projects and consider tax incentives to attract them. He warned that slowing down development in the U.S. could allow other countries to gain an advantage.
The pause was announced by Governor Greg Abbott in a letter to state utility officials on August 3. It halts new data center approvals until state agencies complete audits assessing various factors, including tax incentives and resource consumption. However, it does not prevent data centers that generate their own power from connecting to the grid.
An Abbott spokesperson indicated that the pause was prompted by insufficient data from the industry, with less than 10 percent of data centers providing the requested information on power and water usage. ERCOT is currently monitoring over 1,800 projects, which collectively request more than 474 gigawatts of capacity, significantly exceeding the grid's peak demand.
Projections suggest that data centers in Texas could consume between 29 billion and 161 billion gallons of water annually by 2030. As of now, no changes to the order have been announced by either the governor's office or the White House.