President Donald Trump has expressed disapproval of Texas's recent decision to pause data center approvals, labeling it a mistake. In an interview with Punchbowl News, Trump stated that the state's stance against data centers could hinder economic growth, suggesting the industry has the potential to surpass oil in significance.
The pause was announced by Governor Greg Abbott, who cited a lack of information from the industry as a key reason. Fewer than 10 percent of data centers reportedly provided the necessary power and water usage data requested by state officials.
Abbott's spokesperson emphasized the need to prioritize Texans, especially in light of ERCOT's tracking of over 1,800 projects that could demand more than 474 gigawatts of capacity.
The order halts new data center approvals seeking to connect to the ERCOT grid until audits are completed, which will evaluate various factors including tax breaks and community impact. However, it does not apply to projects that can generate their own power. Projections indicate that data centers in Texas could consume between 29 billion and 161 billion gallons of water annually by 2030.
As of now, neither the governor's office nor the White House has indicated any changes to this order.
