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Trump criticizes Texas Governor Abbott's moratorium on new data center grid connections, signaling political pressure to lift restrictions.

Federal-state tensions on data center siting; political intervention signals restrictions may ease, but grid capacity upgrades remain multi-year reality.
Trade pressSlicast · August 10, 2026 · US · Source: Google News
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Governor Greg Abbott has moved to temporarily halt new data centers from connecting to Texas's power grid unless companies first provide the state with detailed information about their expected electricity and water use. The action has drawn criticism from President Donald Trump.

In an interview with Punchbowl News, Trump characterized Abbott's new moratorium as "a mistake." He added, "When a community wants it, it means a lot of money is going to come into that community."

On Monday, Abbott paused approvals for any data center seeking to connect to the state's power grid, citing reliability concerns. Abbott's office noted that ERCOT is tracking a more than 500% increase in peak electricity demand.

Under the moratorium, companies must share information with the state about a proposed facility's electricity and water use. Those failing to meet the governor's requirements will be kept off the grid.

The governor's office stated: "Simply put Texans must come first."

Josh Blank, Research Director with the Texas Politics Project, said the disagreement places Abbott in a difficult political position within his party. "It forces the Republican Governor of Texas to take what can be seen as an anti-development or anti-business position, even though at this point it's just trying to get a rein in on this issue of data centers," Blank said.

Blank also pointed to public opinion as the November election approaches. A June UT Texas Politics Project poll showed a majority of Texas voters opposed to the construction of data centers in their community.

Texas currently has 536 data center facilities statewide, including 66 in Austin.

Despite Trump's criticism, Blank said Abbott is likely to maintain his position. "Governor Abbott is very well-informed when it comes to the views of Texans, and his decisions about data centers reflect a deep understanding of what the politics of this look like," Blank said.

There has been no indication Abbott plans to change course following the president's criticism.

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Trump criticizes Texas Governor Abbott's… · Slicast