Abbott says data center firms 'dug their own grave' amid backlash
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Texas Governor Greg Abbott said data center companies 'dug their own grave' and deserve the backlash they face after failing to win community support. His remarks mark a sharp reversal from November, when he called Texas the 'epicenter of AI development' and joined Google to announce a $40 billion investment. The shift comes as Democratic governors in Pennsylvania and New York also impose new restrictions on data centers.
Key Facts
- Abbott told ABC's Jonathan Karl that data center companies 'basically dug their own grave' and 'got the backlash they deserve.'
- In June, Abbott directed state regulators to make data centers pay the full cost of electrical infrastructure and called for phasing out tax incentives.
- Earlier this month, Abbott ordered regulators to audit data centers seeking to connect to Texas' power grid before allowing projects to proceed.
- Last week, Abbott told Fox News Sunday that fewer than 10% of data center companies had responded to a state request for information needed to project future power demand.
- New York Governor Kathy Hochul last month ordered a one-year moratorium on hyperscaler data centers, and Pennsylvania Governor Josh Shapiro imposed new restrictions this week.
Abbott's Reversal
In November, Abbott called Texas the 'epicenter of AI development' as he joined Google to announce a $40 billion investment into three data center campuses. By June, he had directed state regulators to make data centers pay the full cost of the electrical infrastructure they require and called for phasing out tax incentives. Earlier this month, he ordered regulators to audit data centers seeking to connect to Texas' power grid before allowing the projects to move forward. Abbott told ABC's Jonathan Karl on 'This Week' that the backlash stems partly from the sheer speed of the buildout and partly from developers moving into communities without first gaining support.
National Political Fallout
The National Republican Senatorial Committee warned leading AI companies last week that voter anger over data centers was imperiling Republicans' chances of holding a critical Ohio Senate seat. President Trump has taken aim at Abbott's approach, arguing 'for Texas to say no to data centers is a mistake' because the industry 'could be bigger than oil.' Democratic Pennsylvania Governor Josh Shapiro, who last year celebrated a $20 billion Amazon data center investment, imposed new restrictions this week. New York Governor Kathy Hochul, also a Democrat, last month ordered a one-year moratorium on hyperscaler data centers.
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Abbott says data center firms 'dug their own grave' amid backlash
