Abbott: Data Centers 'Dug Their Own Grave'

Abbott: Data Centers 'Dug Their Own Grave'

The News

Texas Gov. Greg Abbott said AI data center developers brought the public backlash on themselves, telling ABC's "This Week" on Sunday that they "basically dug their own grave."

Abbott used the interview to defend his pause on approvals for new data centers seeking connections to the state power grid — a sharp reversal for a Republican who called Texas the "epicenter" of AI development less than a year ago.

President Donald Trump has called the pause a "mistake."

What Abbott Said

"They pop up in places that nobody ever heard of before, until they started the construction," Abbott told co-anchor Jonathan Karl, according to Politico. "And so, they had not been working in collaboration with the state, they'd not been in collaboration with local governments, and so they basically dug their own grave for the problem that's been caused for them and that's why they got the backlash they deserve."

"Gaining the support of people in local communities is essential," he said, per Business Insider.

"If you're a data center and you want to operate in Texas, you have to first get the approval of those in local communities," Abbott said Sunday, Newsweek reported.

Karl pressed him on approval speed: reports show one massive power plant for a Meta data center was approved in 20 days, another in three days and another in only two. Asked whether that was a mistake, Abbott declined to call any of them one.

"To actually begin the data center, they don't need to get approval from the State of Texas, which is the way the law currently works," Abbott said. "One thing that they would need to do, eventually, is to get the approval to plug into the power grid."

The Grid Math

Texas now has 335 data centers with at least 248 more in the works, according to the Texas Tribune.

Abbott's press secretary, Andrew Mahaleris, told Newsweek that ERCOT — the Electric Reliability Council of Texas — is tracking a more than 500 percent increase in peak electricity demand. "This unprecedented growth could endanger the reliability and stability of the Texas electric grid," he said.

Mahaleris also said Texas law requires data centers to report their power and water usage, but fewer than 10 percent were in compliance.

"The Governor's pause requires data centers to provide PUCT and ERCOT with the required information for them to make fully informed decisions," he said. "Simply put, Texans must come first."

Abbott said earlier this month that his administration had halted some 1,800 AI data center projects in the state, according to Business Insider.

Timeline

November 2025:

Abbott declares Texas the "epicenter of AI development" and announces a $40 billion Google investment. The state had offered sales tax exemptions to qualifying data centers.

June 2026:

Abbott introduces new standards for AI data center projects, including instructions to the state utility commission and grid operator to protect residents from infrastructure costs.

August 2026:

Abbott halts approvals for proposed data centers seeking grid connections while regulators run a comprehensive audit of electricity and water consumption, cooling systems, tax incentives, ownership and community impact plans.

Earlier this month:

Trump tells Punchbowl News the pause is a "mistake."

Sunday, Aug. 23:

Abbott defends the pause on ABC's "This Week."

Reactions

Trump has pushed back directly. "I saw Texas the other day sort of is against data centers," he said in a nearly hourlong Punchbowl News interview. "I think it's a mistake. And I'm not taking positions, I just think it's a mistake, because there are other communities that want it. When a community wants it, it means a lot of money is going to come into that community."

On Fox News' "Night with Trace Gallagher," Trump said "any community that turns down AI is making a big mistake because your taxes are going to go way down." He added: "If you own a house, it's going to be more valuable. It's a tremendous thing. It's almost like there's a campaign against data centers. But data centers, if you look at the stats, everything's good around them."

Axios called Abbott's remarks one of the starkest warnings yet from a Republican executive to the AI industry.

The public is not with the industry. A Gallup survey this year found roughly seven in 10 Americans oppose construction of data centers in their local area, with 48 percent strongly opposed. A June Echelon Insights survey found voters opposed a local AI data center 62 percent to 27 percent — and more said they'd accept a nuclear power plant nearby than a data center. A Reuters/Ipsos survey in June put opposition at 57 percent. A July Emerson College poll found 63 percent of U.S. voters opposed, up 21 points since December 2025.

What's Next

The statewide audit will examine developers' expected electricity and water use, cooling systems, tax incentives, ownership and plans to mitigate impacts on surrounding communities. Abbott says projects that fail the state's requirements should be denied grid connections.

The pause is not a blanket ban. It primarily hits proposed facilities seeking grid connections; some projects generating their own power may avoid the traditional grid-connection process. Abbott pointed Sunday to a Meta-linked project near El Paso that sits outside the state's main grid and, he said, has indicated it will comply with the new guidelines.

Politics runs underneath all of it. Abbott is seeking an unprecedented fourth term against Democrat Gina Hinojosa, with Texas also hosting a Senate race between Republican nominee Ken Paxton and Democrat James Talarico.

"What matters in elections is not in August, what matters in elections is November," Abbott said. "And when those voters go in, they're going to choose between common sense that's offered by Republicans versus the crazy that's offered by the Democrats."

Asked about a fifth term, he said: "As Trump says, I may run for a fifth term, or sixth term, seventh term, who knows."

More

Texas is not alone. A July 2026 tracker from the National Conference of State Legislatures lists Delaware, Georgia, Michigan, New York, Pennsylvania, South Carolina, Vermont and Virginia as states with active or recent efforts to restrict, pause or temporarily ban data center development. New York went furthest, becoming the first state to enact a statewide moratorium on large new data centers.

The fight cuts against the federal push. The Trump administration has accelerated permitting for AI infrastructure and backed the $500 billion Stargate Project, the OpenAI- and Oracle-led plan to build hyperscale data centers across the country.

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