Texas Gov. Greg Abbott (R) is taking a harder line on AI data centers as public opposition over electricity, water, and local development grows. The governor's comments come amid a nationwide backlash against the massive facilities that are springing up to power the AI boom.

Abbott Blames Data Center Developers for Growing Backlash

On Sunday, during an interview on ABC's "This Week," Abbott said data-center developers brought much of the current backlash on themselves by moving too quickly without adequately engaging local communities.

"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.

The backlash has spread across the country as residents object to facilities that can consume enormous amounts of electricity and water while raising concerns about noise, environmental impacts, and infrastructure costs.

A new Heatmap Pro poll by Embold Research found that 75% of Americans oppose having a new data center built near their homes, and more than 60% said they would strongly oppose such a project.

Texas Puts Data Center Expansion Under Scrutiny

Texas has been one of the biggest beneficiaries of the AI infrastructure boom, but Abbott has increasingly moved to slow development and impose stricter requirements.

Earlier this month, Abbott ordered state regulators to audit data centers seeking connections to the Texas power grid before projects can move forward. The review covers information including electricity demand, water use, tax incentives, and plans to reduce local impacts.

ERCOT and the Public Utility Commission of Texas are expected to audit roughly 250 to 300 projects, most of them data centers. Abbott has also pushed standards requiring data centers to protect the power grid, conserve water, and cover their own costs.

Abbott Faces Pressure From Voters and Puts Him at Odds With Trump

The governor's tougher stance puts him in a difficult position as President Donald Trump continues promoting rapid AI infrastructure development. Trump has criticized communities that oppose data centers, while Abbott has argued that Texas must address its unique power-grid challenges.

"Gaining the support of people in local communities is essential," Abbott said.

Meanwhile, Trump defended the rapid expansion of U.S. data centers, arguing that communities rejecting such projects are "making a mistake" by potentially missing out on jobs, investment, and tax revenue.

States Tighten Data Center Rules as Trump Pushes Back

Last week, Pennsylvania Gov. Josh Shapiro (D) introduced new requirements for data center developers, including tougher standards for energy use, environmental protections, transparency, and community engagement.

The move came after New York Gov. Kathy Hochul (D) announced a one-year moratorium on new hyperscale data centers requiring at least 50 megawatts of power amid concerns over strain on the state's power grid. At the time, Trump criticized the move as a "terrible decision," arguing that the moratorium could push jobs, investment, and tax revenue to other states.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by MarketDash editors.