President Donald Trump expressed disapproval regarding Texas's recent decision to pause data center approvals, labeling it a mistake in an interview with Punchbowl News. He stated that the data center industry has the potential to surpass the oil sector in significance for the state.
The pause, announced by Governor Greg Abbott, halts new data center projects from connecting to the Electric Reliability Council of Texas (ERCOT) grid until state agencies conduct audits. These audits will evaluate factors such as tax incentives, power and water usage, and community impact. However, the order does not prohibit projects that can generate their own power on-site.
Abbott's spokesperson indicated that the pause was necessary due to insufficient information from the industry, with fewer than 10 percent of data centers providing the requested data on power and water consumption. ERCOT is currently managing over 1,800 projects, with approximately 90 percent of new connection requests originating from data centers.
Projections suggest that by 2030, water use by data centers in Texas could reach between 29 billion and 161 billion gallons annually. No changes to the order have been announced by either the governor's office or the White House.
Denton is about 36 miles northwest of Dallas.
