Texas welcomed the AI boom. Now Abbott says data centers "dug their own grave"
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Newsletters Axios Local Show Axios Pro Axios Live The Axios Show Login Axios All topics Axios Search Updated 6 hours ago - Energy & Climate Data centers "dug their own grave," says Texas Gov. Greg Abbott Andrew Pantazi , Ben Geman email (opens in new window) sms (opens in new window) facebook (opens in new window) twitter (opens in new window) linkedin (opens in new window) bluesky (opens in new window) Add Axios on Google Add Axios as your preferred source to
Add Axios on Google Texas Gov. Greg Abbott speaks in Fort Worth, Texas, last month. Photo: Elvis Martinez-Cartagena/Fort Worth Star-Telegram/Tribune News Service via Getty Images
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 .
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.
Zoom out: The backlash is quickly becoming a political problem for the AI industry.
What he's saying: Abbott told telling ABC's Jonathan Karl on "This Week" that the backlash stems partly from the sheer speed of the buildout, and partly from developers moving into communities without first gaining support.
The intrigue: President Trump has taken aim at Abbott's approach, arguing "for Texas to say no to data centers is a mistake" because the industry "could be bigger than oil."
By the numbers: 61% of Americans now oppose construction of a new data center in their area, according to an Annenberg Public Policy Center survey last month, up from 49% in March.
Between the lines: For years, the biggest questions around the massive AI buildout were whether the technology would live up to the hype, whether companies could secure enough chips and electricity, and whether the trillions in spending made sense.
State of play: Data center spending has become large enough to matter for the broader American economy and central to the effort to stay ahead in the global AI race.
The bottom line: If voter anger hardens into more moratoriums, slower permitting or abandoned projects, it could constrain the computing infrastructure AI companies are counting on and weaken one of the fastest-growing sources of U.S. investment.
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