In an interview with Punchbowl News, President Donald Trump criticized Texas for pausing approvals for new data centers, stating it could hinder economic growth. He emphasized that the data center industry has the potential to surpass the oil sector's significance in Texas. Trump remarked that data centers are crucial for local economies, bringing substantial financial benefits to communities that welcome them.
The pause, announced by Governor Greg Abbott on August 3, halts new data center projects from connecting to the Electric Reliability Council of Texas (ERCOT) grid until a thorough audit is completed. This audit will evaluate various factors, including tax incentives, resource consumption, and community impact. It is important to note that this order does not prohibit data centers that generate their own power.
According to Abbott's spokesperson, Andrew Mahaleris, the decision was prompted by a lack of compliance from the industry, with less than 10 percent of data centers submitting the requested data on power and water usage. ERCOT has reported a significant increase in peak electricity demand, tracking over 1,800 projects in its interconnection queue, which collectively request more than 474 gigawatts of capacity.
Abbott has indicated that around 90 percent of these requests originate from data centers. Projections suggest that by 2030, water consumption from data centers in Texas could reach between 29 billion and 161 billion gallons annually. No updates have been provided by either the governor's office or the White House regarding the status of the order.
Howe is about 52 miles north of Dallas.
