Texas holds the largest pipeline of data center capacity under construction in the U.S. according to analytics firm Wood Mackenzie, but the state's political leadership is now actively working against it.
The buildout, driven almost entirely by artificial intelligence infrastructure demand, is colliding with local opposition across rural and suburban areas. Residents cite water and power consumption concerns, and rising utility bills tied to the expanding facilities.
Governor Greg Abbott has performed a sharp reversal. After initially supporting the data center expansion, he told Fox News Sunday that the industry "dug their own grave" and "got the backlash they deserve." The state had requested information from data center companies to project future power demand; fewer than 10 percent responded—a signal of either indifference or defiance.
President Donald Trump has publicly disagreed with Abbott's stance, telling reporters that "for Texas to say no to data centers is a mistake" and suggesting the industry "could be bigger than oil" for the state's economy.
Despite the political rhetoric, capital continues to flow into Texas projects. Previously approved capacity remains under construction and moving forward.
The broader picture: Wood Mackenzie data shows at least 36 gigawatts of capacity were added to the pipeline of proposed and active data center projects during the first quarter of this year nationally. Texas's dominance in that pipeline reflects the state's existing power infrastructure, tax advantages, and proximity to major cloud operators' existing facilities—competitive advantages that local friction alone is unlikely to erase.
