In a recent interview, President Donald Trump criticized Texas for its decision to pause approvals for new data centers. He stated that this move could hinder the state's economic growth, suggesting that the data center industry might surpass oil in importance. Trump remarked, "For Texas to say no to data centers is a mistake in the sense that it could be bigger than oil."
He emphasized the significant economic benefits these projects could bring to communities.
The pause was announced by Governor Greg Abbott in a communication to the state's Public Utility Commission and the Electric Reliability Council of Texas. This decision halts new data center connections to the ERCOT grid until state agencies conduct audits to evaluate tax incentives, resource consumption, and community impact. Projects failing to meet the review criteria will not be allowed to connect to the grid.
An Abbott spokesperson explained that the pause was prompted by a lack of information from the industry, noting that less than 10 percent of data centers had submitted the necessary power and water usage data requested by the state. ERCOT is currently monitoring over 1,800 projects, which collectively represent more than 474 gigawatts of requested capacity, significantly exceeding the grid's peak demand.
Projections indicate that data center water consumption in Texas could reach between 29 billion and 161 billion gallons annually by 2030.
