President Donald Trump (R) criticized Texas' growing scrutiny of data center development, calling opposition to the projects a "mistake" as Governor Greg Abbott (R) moves forward with an audit of projects seeking access to the state's power grid.
Trump weighs in on Texas data centers.
President Trump is pushing back on concerns surrounding data center growth in Texas, arguing that blocking or limiting the projects could cost communities significant economic opportunities.
"I saw Texas the other day sort of against data centers. I think it's a mistake," said Trump. "I'm not taking positions."
Trump pointed to communities that welcome data center development, arguing that the projects can bring substantial investment and economic activity to areas willing to host them.
"They are tremendously important for the economics," said Trump, adding that data centers could ultimately become an industry "bigger than oil" for Texas.
Trump also warned that the United States cannot allow China to surpass the country in data center development, highlighting the growing importance of data infrastructure to the global technology race.
Abbott Calls for Data Center Audit
Trump's comments come as Texas Gov. Abbott has ordered a comprehensive audit of data center projects seeking to connect to the Texas electric grid.
Abbott directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to verify and audit all data centers currently moving through ERCOT's interconnection process.
He warned that the unprecedented growth in electricity demand could threaten the reliability and stability of the Texas grid if projects move forward without adequate planning.
Under Abbott's directive, no data center project can move forward until the audit is completed. The projects that fail to meet PUCT, ERCOT, or state requirements can be denied connection to the Texas grid.
"Our top priority is to protect Texans' safety and quality of life," said Abbott.
For Texas, the question is no longer whether data centers are coming, but how much the state can accommodate while keeping electricity reliable and affordable for Texans.
