Texas Gov. Greg Abbott delivered sharp criticism of the data center industry this week. He said the companies brought the public backlash on themselves.
Abbott made the comments during an interview on ABC's "This Week." He told host Jonathan Karl that data center firms failed to build support in local communities before starting projects.
"They basically dug their own grave for the problem that's been caused for them," Abbott said. He added that the backlash the industry faces is deserved.
A Change In Tone From Texas
Abbott's comments mark a shift from his earlier stance. Just last November, he called Texas the epicenter of AI development.
At that time, Abbott joined Google to announce a $40 billion investment across three data center campuses in the state. He praised the deal as a win for Texas.
Since then, Abbott has taken a more cautious approach. In June, he directed state regulators to require data centers to pay the full cost of electrical infrastructure they need.
He also called for phasing out tax incentives that had drawn companies to the state. Earlier this month, Abbott ordered regulators to audit data centers before allowing them to connect to the Texas power grid.
Abbott said fewer than 10% of data center companies responded to a state request for information about future power needs. He said that lack of response made planning difficult for regulators.
Other States Are Also Pulling Back
Texas is not alone in reconsidering the data center boom. Pennsylvania Gov. Josh Shapiro imposed new restrictions this week after celebrating a $20 billion Amazon data center investment last year.
New York Gov. Kathy Hochul ordered a one-year moratorium on large hyperscaler data centers last month. Both governors are Democrats, showing the concern crosses party lines.
Public opinion data supports the pushback. An Annenberg Public Policy Center survey last month found 61% of Americans oppose new data centers in their area, up from 49% in March.
The opposition includes 69% of Democrats, 54% of Republicans, and 53% of independents. Voter anger over data centers has also become a political issue in upcoming elections.
Axios reported last week that the National Republican Senatorial Committee warned AI companies that data center backlash could hurt Republican chances in an Ohio Senate race.
Not everyone agrees with Abbott's approach. President Trump said Texas should not turn away data center projects, arguing the industry could become bigger than oil.
Data centers require large amounts of electricity, water, and land. They also create fewer permanent jobs compared to typical manufacturing or warehousing projects that usually receive tax breaks.
Texas has been one of the most active data center markets due to its business friendly policies and energy resources. That includes natural gas, renewables, and available land.
Whether voter anger leads to more restrictions or slower permitting remains to be seen. State and local governments across the country continue to respond to public pressure over data center growth.
