Texas Public Utility Commission Chairman Robert Abbott criticized data center operators for straining the regional grid, stating they have effectively undermined their own power reliability.
Texas Governor Greg Abbott has stated that AI data center developers have largely brought public opposition upon themselves by failing to engage with local communities prior to launching projects. Speaking on ABC News’ *This Week* on Sunday, the Republican governor argued that the industry’s rapid expansion has fueled anger across Texas and beyond, as many facilities appeared with little public awareness or consultation, raising concerns over power consumption, water use, and neighborhood impacts. “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,” Abbott said. He confirmed that Texas has paused approvals for new data centers while statewide standards are implemented.
Under the new framework, future projects in Texas must satisfy requirements related to water usage, electricity demand, consumer costs, and local community approval before proceeding. The governor emphasized that if a facility fails to meet these state standards, it should be denied connections to the electric grid.
Data centers have emerged as a growing point of contention in communities nationwide. Facilities supporting cloud computing and artificial intelligence require substantial electricity and often significant quantities of water for cooling. Critics have also highlighted concerns regarding noise, strain on power grids, rising electricity costs, and the environmental footprint of meeting surging energy demand. Despite these objections, technology giants including Meta, Microsoft, Amazon, and Google continue to race to construct massive computing facilities to support AI models and cloud services. On August 10, Meta reached an agreement with Abbott, according to a press release provided to Newsweek. “Meta supports Texas Governor Greg Abbott’s commitment to responsible data center development, and we pay the full costs of our data centers’ energy and water use so they aren’t passed on to consumers,” the company stated. Newsweek contacted the other major tech firms via email on Sunday for comment.
Earlier this month, Abbott announced a halt on approvals for proposed data centers seeking grid connections while regulators conduct a comprehensive audit. The review will examine developers’ projected electricity and water consumption, cooling systems, tax incentives, ownership structures, and efforts to mitigate impacts on surrounding communities. Abbott’s press secretary, Andrew Mahaleris, previously told Newsweek that the pause is necessary to protect Texans’ safety, quality of life, and the integrity of the power grid and water supply. “Many are unaware that ERCOT [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,” Mahaleris said. He noted that while Texas law mandates data centers report their power and water usage, fewer than 10 percent were in compliance. “The Governor’s pause requires data centers to provide PUCT [Public Utility Commission of Texas] and ERCOT with the required information for them to make fully informed decisions. Simply put, Texans must come first,” he added.
President Donald Trump criticized Abbott’s decision, calling the pause a “mistake.” In a nearly hourlong interview with Punchbowl News earlier this month, Trump remarked, “I saw Texas the other day sort of is against data centers. 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.” During a subsequent interview with Fox News’ *Night with Trace Gallagher*, the president added that “any community that turns down AI is making a big mistake because your taxes are going to go way down.” He continued, “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.” Abbott’s pause does not constitute a blanket ban; it primarily targets proposed facilities seeking traditional grid connections, though some projects with independent power generation may bypass the standard process.
Texas has become one of the nation’s leading destinations for data center construction, with developments spreading from major metropolitan areas to smaller towns. On Sunday, Abbott pointed to a Meta-linked project in the El Paso area as evidence of ongoing investment, noting that the facility operates outside the state’s main power grid and that the company has pledged to comply with the new guidelines. The governor previously characterized Texas as the “epicenter” of the AI industry, citing the state’s abundant land, business-friendly policies, and robust energy infrastructure as key attractions. Nationally, major data center developments remain heavily concentrated in states such as Virginia, Arizona, Georgia, and Ohio, where companies are securing land and power access to meet surging AI demand.
Abbott framed his pause as a direct response to mounting public complaints, stressing that local approval is now mandatory for operators in Texas. “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,” he said on Sunday.
According to a July 2026 tracker from the National Conference of State Legislatures (NCSL), states with active or recent efforts to restrict, pause, or temporarily ban data center development include Delaware, Georgia, Michigan, New York, Pennsylvania, South Carolina, Vermont, and Virginia. Several other states, including Minnesota, New Hampshire, Maryland, Oklahoma, South Dakota, and Wisconsin, considered similar legislation that ultimately failed or stalled. The most significant regulatory action occurred in New York, which became the first state to enact a statewide moratorium on large new data centers, pausing certain projects while officials study their impacts.
These restrictions coincide with increasing pushback from local governments and residents across multiple states, who have challenged proposed facilities through zoning disputes, public hearings, and development reviews. Abbott suggested that the backlash stems not only from infrastructure concerns but also from developers’ failure to build trust with the communities where they planned to operate.
Public sentiment reflects this resistance. A June 2026 survey from Echelon Insights found that voters opposed building an AI data center in their community by a margin of 62 percent to 27 percent. Even after respondents were presented with additional messaging highlighting economic and technological benefits, opposition remained at 58 percent. Notably, the same survey revealed that more respondents would support building a nuclear power plant in their community than an AI data center. Support for a nuclear facility stood at 34 percent, compared with just 27 percent for an AI data center, while opposition to nuclear plants was lower than opposition to data centers. A June Reuters/Ipsos survey found that 57 percent of Americans would oppose a data center being built in their community, with only 14 percent comfortable living near one. An earlier Gallup survey indicated that roughly seven in ten Americans oppose local data center construction, underscoring a widening gap between national demand for AI infrastructure and local acceptance. Meanwhile, a July poll by Emerson College found that 63 percent of U.S. voters oppose AI data centers being built in or near their community, a 21 percentage-point increase from when the question was last asked in December 2025.