Data centers ‘dug their own grave,’ says Texas Gov. Greg Abbott
Texas Gov. Greg Abbott delivered one of the starkest warnings yet from a Republican to the AI industry, saying data center companies “dug their own grave” and deserve the backlash they’re facing after failing to win community support.
Why it matters: Abbott is the latest governor to sharply change course on the AI data center boom he once enthusiastically courted, as local opposition becomes a potent political force.
- Democratic Pennsylvania Gov. Josh Shapiro, who last year celebrated a $20 billion Amazon data center investment, imposed new restrictions this week.
- New York Gov. Kathy Hochul, also a Democrat, last month ordered a one-year moratorium on hyperscaler data centers.
Catch up quick: Just last November, Abbott called Texas the “epicenter of AI development” as he joined Google to announce a $40 billion investment into three data center campuses.
- In June, however, Abbott 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.