Trump: Data Centers Could Be ‘Bigger Than Oil’ as Texas Seeks Pause
President Donald Trump says Texas is making a mistake when it comes to pausing data center projects.
Trump made the remarks while in an interview with Punchbowl News that was uploaded on YouTube on Aug. 7. During a discussion about artificial intelligence and the rapid expansion of data centers, Trump said that if he were a governor, he would want the data center projects “so badly.”
“I saw Texas the other day, sort of against it,” Trump said. “I think it’s a mistake, and I’m not taking positions here, I just think it’s a mistake. There are other communities that want it, and when a community wants it, it means a lot of money is going to come to the community.”
Trump was also asked whether he considers data centers unsightly. He pushed back on that criticism, describing them as some of the most “incredible buildings” he has seen.
Trump said he believes data centers could become a major economic driver for communities that welcome them.
“I think they are tremendously important for the economics,” Trump said. “It could be bigger than oil. Data centers could be bigger than oil. There are a lot of communities that want them.”
His comments come after Texas Gov. Greg Abbott ordered a temporary pause on new data center grid connections while state regulators review proposed projects. Abbott’s office has warned that unprecedented growth in electricity demand from data centers could threaten the reliability and stability of the Texas power grid.
Trump pushed back on those concerns during the interview, saying data center developers are increasingly building their own power generation.
“They are building their own plants; they are not going to be taking it from the grid,” Trump said. “Those communities are going to be making a fortune.”
Data centers may bring construction, tax and utility revenue to communities, but the cost of new power generation, transmission upgrades and grid services can affect electricity customers when regulators decide how those expenses are allocated. The report does not say whether Texas customers will bear any of those costs.
Why Texas Paused New Grid Connections
Abbott ordered a temporary pause while regulators review proposed projects and the strain that unprecedented data-center growth could place on the state’s electricity system. The review is aimed at reliability and stability as demand rises.
What the Debate Means for Electricity Customers
The dispute centers on whether developers will build and pay for dedicated power supplies or rely on the shared grid. Until regulators provide more details, the effect on household bills remains uncertain. Customers should watch for decisions about who pays for generation, transmission and related grid upgrades.
Natassia Paloma may be reached at [email protected], @NatassiaPaloma on X, natassia_paloma on Instagram, and Natassia Paloma on Facebook.
Reporting by Natassia Paloma, USA TODAY NETWORK / USA TODAY
USA TODAY Network via Reuters Connect
