Texas Governor Greg Abbott, who previously championed the state as an AI development hub, has sharply criticized companies building data centers, stating they have "dug their own grave" by failing to secure public support.
Abbott asserted that developers rushed into communities without adequately addressing local concerns, leading to significant backlash against the large facilities that underpin artificial intelligence technology. "Gaining the support of people in local communities is essential," Abbott said Sunday on ABC's "This Week." "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."
The governor's comments coincide with a national surge in public opposition to data center construction. A recent survey indicates that approximately six in 10 Americans now oppose new data centers in their communities, a notable increase from earlier in the year. Consequently, over 500 jurisdictions across the U.S. have halted or restricted data center development, with more than 150 enacting bans in the past month alone.
Data center companies are attempting to mitigate negative perceptions by engaging with communities and moderating their predictions about AI's impact on the workforce. However, concerns about potential job displacement and environmental impact continue to fuel public discontent.
Earlier this month, Abbott placed a pause on new data center construction in Texas, calling for audits of projects before they can proceed with connecting to the state's power grid. He also revealed that fewer than 10% of data center companies have provided necessary information for the state to project future power demands. In June, Abbott directed state regulators to hold data centers responsible for the full cost of their required electrical infrastructure and indicated plans to phase out tax incentives.
This shift in stance contrasts with his previous enthusiasm. Last November, Abbott hailed Texas as the "epicenter of AI development" while announcing a significant investment in data center campuses.
Abbott is not alone among governors in reassessing their support for the burgeoning data center sector. Pennsylvania Governor Josh Shapiro, who last year celebrated a major Amazon data center investment, recently implemented new restrictions, which he described as the nation's "strictest guardrails." Similarly, New York Governor Kathy Hochul imposed a one-year moratorium on new "hyper-scale" data centers last month.
The growing backlash against data centers is emerging as a significant political issue. Private memos suggest that negative public sentiment could impact electoral success in key regions.