President Donald Trump expressed his disapproval of Texas's decision to pause data center approvals during an interview with Punchbowl News. He stated that the state's stance against data centers represents a significant error, claiming the industry could surpass the oil sector in importance.
Trump emphasized the economic benefits of data centers, noting that they bring substantial financial resources to communities. He suggested that if he were in a gubernatorial position, he would actively pursue these projects and implement tax incentives to attract them. He also warned that a slowdown in U.S. development could benefit other nations.
The pause was announced by Governor Greg Abbott on August 3, halting new data center connections to the ERCOT grid pending audits. These audits will evaluate tax incentives, resource consumption, and community impact. Abbott's spokesperson indicated that the decision arose from a lack of compliance from the industry, with fewer than 10 percent of data centers providing necessary data on power and water usage.
ERCOT is currently managing over 1,800 projects, with data centers accounting for about 90 percent of new connection requests. Projections suggest that water usage by data centers in Texas could reach between 29 billion and 161 billion gallons annually by 2030.
Celina is about 38 miles north of Dallas.