Trump argues that rejecting a data center is a mistake, while Abbott has a differing opinion.

      Texas Governor Greg Abbott stated that the backlash against data center companies is self-inflicted. “They essentially dug their own grave regarding the issues they face,” he told ABC’s Jonathan Karl on Sunday. “That is why they are receiving the backlash they deserve.” Andrew Pantazi and Ben Geman highlighted these comments for Axios, viewing them as one of the clearest warnings from a Republican to the AI sector.

      Abbott attributed the backlash against data centers to two main issues: the rapid pace of development and the tendency of developers to enter communities without first securing local support. “It is crucial to gain the backing of local residents,” he emphasized.

      Abbott did not specify which of his own decisions he might reconsider. Nine months prior, he was promoting the industry's growth; last November, he joined Google to announce a $40 billion investment in three data center campuses in Texas, calling the state the hub of AI innovation. In June, he instructed regulators to ensure that data centers cover the full costs of the electrical infrastructure they require and suggested phasing out tax incentives. This month, he mandated a review of all projects requesting grid connections before they can move forward.

      Last week, he told Fox News Sunday that less than 10% of data center companies responded to a state request for information, which Texas needs to anticipate future electricity demands. A journalist in Austin questioned Abbott's statements, noting that Texas law does not grant local communities the authority to approve projects, as highlighted by Suzanne Bellsnyder on X. She pointed out that Abbott’s own written plan calls for consideration of community impacts, which differs from formal approval.

      In contrast, former President Trump defended the data center expansion during a radio interview with his former associate Michael Cohen, aired in full on Sunday. He argued, “Communities that reject a data center are making a mistake," because such developments bring “tremendous amounts of jobs and money.” He claimed that the United States is significantly ahead of China in AI and insisted that data centers are not drawing power from the grid but are constructing their own power facilities. “They’re building the most impressive power plants you’ve ever seen,” he stated.

      Rebecca Falconer reported on the interview for Axios and verified Trump's claim that some data centers do construct self-sufficient energy facilities, while others rely on the grid.

      Regarding federal actions, the administration has relaxed certain environmental regulations while urging operators to take on a larger share of electricity costs. Last month, the Environmental Protection Agency released guidance for facilities not connected to the public power grid, clarifying that they fall outside the purview of the Clean Air Act’s Acid Rain Program, thus expanding options for dedicated energy generation by data centers. Trump’s Ratepayer Protection Pledge calls on operators to either produce or acquire the power they utilize, as well as cover related infrastructure costs. He previously criticized Texas for declining data centers, arguing that the sector could surpass oil in significance.

      Democrats made the first moves, with Pennsylvania Governor Josh Shapiro celebrating a $20 billion investment from Amazon last year, but this week implemented new restrictions. New York Governor Kathy Hochul enforced a one-year moratorium on hyperscale data centers last month, which Trump denounced. She remains steadfast in her decision.

      Polling data reflects shifting public sentiment: a recent Annenberg Public Policy Center survey revealed that 61% of Americans are against new data centers in their vicinity, a jump from 49% in March. This opposition spans party lines, with 69% of Democrats, 54% of Republicans, and 53% of independents opposing new developments.

      Amid growing concerns, Axios reporter Alex Isenstadt disclosed that the National Republican Senatorial Committee had directly alerted prominent AI firms about potential issues, as voter dissatisfaction regarding data centers jeopardizes the party’s position in a key Ohio Senate race. This unexpected situation has raised eyebrows, with skeptics indicating apprehension about the buildout’s sustainability, but few anticipated that red-state Republicans would express concerns over electoral consequences.

      Bill Kristol observed that such a significant shift raises questions about what Abbott's polling indicates for his own political future. However, not everyone agrees these developments will significantly impact elections. Republican strategist Logan Dobson countered this narrative, suggesting that while data centers are part of the dialogue, they are not the primary electoral issue, noting that polls show affordability takes precedence.

      Data centers do generate construction jobs but typically operate with minimal staff afterward, as pointed out by Benedict Collins for TechRadar. Often, the firms engaged in construction are not local. Meta highlighted that tax revenue from its Louisiana facility has funded considerable bonuses for local teachers, although Meta also received $3.3 billion in tax breaks for that site. Ohio anticipates a $136 million revenue decline due to data center tax exemptions, a number Governor Mike DeWine estimates has risen to $1.6 billion. In response, several states are reevaluating or revoking these exemptions.

      Axios also noted that data centers usually provide fewer permanent positions than warehousing and manufacturing