President Trump Weighs in on Texas’ Data Center Moratorium

President Trump called Texas’ one-year moratorium on all new AI data center construction a mistake earlier this month, as a bipartisan movement against the backbone of the American economy has taken shape for the worst.

President Trump says Gov. Greg Abbott’s data center pause is “a mistake”:

“They are tremendously important for the economics. I mean, for Texas to say no to data centers is a mistake in the sense that it could be bigger than oil…and there are a lot of communities that want… pic.twitter.com/StxHoznuWn

— Manhattan Institute (@ManhattanInst) August 17, 2026

“I saw Texas the other day sort of is against data centers. I think it’s a mistake,” the president said. “And I’m not taking positions here. I’m just thinking it’s a mistake because there are other communities that want it. When a community wants it, it means a lot of money is going to come into that community.”

“Unsightly, potentially. Well, I don’t think they’re unsightly. I mean, I’m looking at some of these data centers, the most incredible buildings I’ve ever seen. They go for two and a half, three miles. They’re three miles by three miles. They’re necessary for the technology. They are tremendously important for the economics,” Trump continued. “I mean, it’s, this is for Texas to say no to data centers is a mistake in the sense that it could be bigger than oil. I mean, data centers could be bigger than oil. You have the Texas oil. And there are a lot of communities that want it, but more importantly, and bad for us, they have a lot of countries that want them. And if we turn off on data centers, we turn off on AI.”

While local communities should retain the right to decide whether a data center belongs in their backyard, the broader backlash has moved well beyond local control. New York and Texas have imposed statewide pauses on major data-center projects, betting that moratoria can resolve concerns over electricity prices, water use, environmental impacts, and local economic returns. 

But, outside of communities with specific infrastructure or resource constraints, the backlash and concern has far outpaced the evidence. Most places that have embraced data centers have seen greater tax revenue, more housing, new jobs, and utility rates that have remained flat or declined.

As AI researcher Andy Masley put it, “data centers provide more revenue per unit area than any other building.” Whether or not that sweeping claim applies everywhere, the broader point remains: data centers are quickly becoming the modern equivalent of a factory, bringing major investment, construction work, permanent skilled jobs, and a larger local tax base.

History favors innovation. Democrats have too often met it with suspicion; conservatives have more often embraced it. That tradition is worth defending, by ensuring America leads the world in expanding, improving, and intelligently guiding its AI industry.

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