Trump champions data centers as Republicans turn against them - The W…

Trump Backs Data Center Growth as Some Republican Officials Address Local Concerns

President Donald Trump has continued to support expansion of data centers, even as some Republican elected officials respond to constituent questions about electricity costs and land use. The difference in approach appears in Texas, where Trump is scheduled to campaign Thursday for Attorney General Ken Paxton, the Republican nominee for Senate. Texas has attracted multiple large data center projects. In recent weeks, Gov. Greg Abbott paused new connections to the state power grid, and Paxton endorsed that step.

Trump described Abbott’s pause as a mistake. The exchange marks one instance in which Republican officeholders have publicly differed from the White House on the issue. Trump signed an executive order last year directing federal agencies to speed permitting for qualifying projects, allow construction on certain federal land, and make approved projects eligible for financial incentives. He has met with technology executives to announce multibillion-dollar investments and has defended the projects in public remarks.

In an April appearance with cryptocurrency industry representatives, Trump said a community that attracts a data center or AI facility would gain substantial construction employment and tax revenue. He added that communities declining such projects risk falling behind others that accept them. A national survey conducted August 21-24 by the Economist and YouGov found 51 percent of respondents disagreed with that assessment, including 41 percent of those who identified as conservative. The same poll showed 61 percent of adults opposed a data center in their own community, including 47 percent of Republicans. Among 2024 Trump voters, more than half said a new facility would raise their electricity bills. Studies have documented that large power demands from data centers can increase wholesale electricity prices and require grid upgrades whose costs are allocated by state regulators and utilities.

A White House official stated that the president supports data centers only in communities that choose to host them. On Friday, Trump said Republican candidates are free to take their own positions. “If a Republican is against the data center, that’s okay with me,” he said.

Democrats have begun airing advertisements linking some Republican candidates to donors connected to technology companies. Trump’s economic messaging has highlighted stock-market performance and corporate investment announcements tied to artificial-intelligence infrastructure. Data-center construction has drawn local opposition in parts of rural Texas.

The administration’s approach was shaped in part by technology executives who contributed to Trump’s campaign. The executive order was announced at an event with hosts of the “All In” podcast, including David Sacks, who later served as White House AI and crypto policy lead. Sacks and venture capitalist Sriram Krishnan contributed to an administration AI Action Plan that recommended faster environmental reviews for data centers. Trump has cited competition with China as a reason to avoid measures that could slow domestic AI development, noting recent releases of Chinese models.

The White House has promoted a voluntary “ratepayer protection pledge” under which technology companies would generate their own power, fund grid upgrades, and shield residential customers from higher bills. The pledge does not include enforcement mechanisms or penalties for non-compliance, and the administration has not released data on participation rates or measured effects to date. Officials have also pointed to construction employment generated by new facilities. Industry data show that data centers require large numbers of temporary construction workers but employ fewer permanent staff once operational. A Pew Research Center survey released this month found 71 percent of adults expect artificial intelligence to reduce overall U.S. employment over the next two decades, an increase from 64 percent in 2024.

Republican campaign strategists have noted the issue’s potential effect on midterm races. A National Republican Senatorial Committee memo obtained by The Washington Post warned that Democratic attacks tying Sen. Jon Husted (R-Ohio) to prior data-center approvals could influence the Ohio Senate contest. The memo stated that data centers had become a significant liability for Husted.

Republican statements about data centers have grown more critical in the past six months, according to a review of social-media posts and newsletters by hundreds of federal and state officeholders. Paxton’s office did not respond to questions about differences between his recent statements and White House policy. Paxton has proposed federal legislation that would restrict data centers from using certain Chinese equipment and would impose criminal liability on companies whose facilities power AI systems found to harm children. Legal experts have questioned the enforceability of those provisions. Pollster Brent Buchanan said voters want clearer explanations of local benefits and costs before projects proceed.

The article continues with additional reporting on specific Texas projects, regulatory timelines, and statements from utility regulators in other states that have faced similar questions about cost allocation. It notes that several states have formed legislative working groups to examine interconnection rules and tax treatment without adopting uniform positions. Federal data from the Energy Information Administration show data-center electricity consumption rising steadily since 2020, with projections varying by scenario. Company announcements of new facilities continue in multiple states, while some local zoning boards have delayed or denied permits. Trump has reiterated that final decisions rest with state and local officials.