I’ll explain how governors and communities are clashing over AI data center growth, why Texas Gov. Greg Abbott says companies “dug their own grave,” the high-profile project failures and local pushback from Utah to Alabama, and what Republican leaders should do to win hearts and votes while protecting resources.
Texas has positioned itself as a magnet for AI infrastructure, and Gov. Greg Abbott has openly celebrated major investments in his state. Abbott called Texas the “epicenter of AI development” after big tech announced multi-campus projects, but he now admits missteps by developers contributed to the backlash. His shift toward making companies pay for grid upgrades and phasing out incentives signals a tougher pro-growth, pro-accountability stance.
Texas Gov. Greg Abbott delivered one of the starkest warnings yet from a Republican to the AI industry, saying data center companies “dug their own grave” and deserve the backlash they’re facing after failing to win community support.
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In June, however, Abbott directed state regulators to make data centers pay the full cost of the electrical infrastructure they require and called for phasing out tax incentives.
Earlier this month, he ordered regulators to audit data centers seeking to connect to Texas’ power grid before allowing the projects to move forward.
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Abbott told telling ABC’s Jonathan Karl on “This Week” that the backlash stems partly from the sheer speed of the buildout, and partly from developers moving into communities without first gaining support.
“Gaining the support of people in local communities is essential,” Abbott said.
“They basically dug their own grave for the problem that’s been caused for them,” he continued. “And that’s why they got the backlash they deserve.”
Across the country, projects have stalled or been blocked amid community concern about water, power, noise, and transparency. A watchdog tally shows billions in proposed data center investments hit delays in states from Arizona to California. Even traditionally welcoming states are pausing to reassess impacts on local rates and infrastructure. That shift undercuts the old sales pitch that data centers are a cost-free path to economic growth.
High-profile examples illustrate how poor community engagement can sink big plans fast. Entrepreneur Kevin O’Leary’s Stratos Project in Utah met fierce resistance despite promises of self-sufficient water and power systems, and state lawmakers forced massive cuts to the project’s footprint. O’Leary himself conceded he “really screwed this up” in messaging and said he would be more transparent about noise, heat, and water implications going forward.
Kevin O’Leary says he could have done a better job selling his plan for a hyperscale data center to the people of Utah.
In an interview with MS NOW, released on Thursday, the “Shark Tank” investor talked about how he and his team did not properly communicate plans for the Stratos data center project in Box Elder County with residents, and “really screwed this up.”
“I have no interest in causing an environmental disaster on my legacy,” he said. “That’s never going to happen. There’s zero probability that’s going to happen.”
O’Leary added that he and his team were planning to be more transparent, sharing plans for a one-gigawatt facility and what the heat, noise, and water impact of this facility would look like. Critics can extrapolate the impact of his fully built data center from those plans, he said.
In Alabama, the debate has taken on political weight ahead of statewide elections, with candidates staking out sharply different positions. One prominent Democrat proposes a year-long moratorium on new facilities, while Republican Sen. Tommy Tuberville pushes full-speed expansion, stressing tax revenue for schools and law enforcement. Tuberville’s blunt dismissal of online social media fears as foreign-inspired drew attention, but voters in small towns have reacted strongly when proposals arrive with little local notice.
Town halls and packed council meetings in places like Wilsonville show how quickly grassroots opposition can form when developers and officials fail to provide clear answers. Residents rallied with signs and filled meeting rooms to demand a voice in decisions that affect their water, view, and taxes. That kind of resistance is exactly what Abbott and others say industry leaders could have avoided by engaging communities earlier and more honestly.
U.S. Sen. Tommy Tuberville (R-AL) is reaffirming his support for data centers in Alabama, saying the facilities will bring revenue to schools, law enforcement and other public services.
Tuberville, who is running for governor, made the remarks Monday at the Alabama Sheriff’s Association annual summer conference in Opelika.
“I think there are 27 states that said we aren’t going to build data centers — we’re not going to do that,” Tuberville said. “It makes too much noise. It’s going to ruin the climate — bull crap. They are listening to all this nonsense they see on social media that’s coming from China because China does not want us to grow.”
Tuberville went on to say the state of Alabama will grow.
“We’re going to do data centers. It will help you tremendously,” Tuberville said. “The tax money that comes from those things is unbelievable for schools, for law enforcement, for anything that’s done.”
Not every Republican takes the same tone. Sen. Katie Britt advocates a middle path that insists on local decision-making and better information for communities. She stresses national competitiveness versus China while saying localities must have the facts and the right to reject projects that don’t meet their needs. That balancing approach aims to protect growth without bulldozing local concerns.
The Alabama senator emphasized in an interview with Alabama Daily News that her philosophy regarding the massive facilities that guzzle up electricity and water to power online consumption involves a balancing act.
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“We’ve all got to be invested in how we beat China because that has real implications on national security and our way of life and the American dream,” Britt told ADN in an exclusive interview. “But I absolutely think that those decisions need to be made on a local level.”
And Britt added that when communities have all the information on proposed centers and choose not to move forward, they “shouldn’t be forced” by companies to proceed.
Republican leaders who back AI infrastructure must get better at two things: transparency and persuasion. When companies present clear plans, fund necessary grid upgrades, and address water and noise concerns up front, communities are more likely to see benefits. That pragmatic, accountable approach keeps growth aligned with voter priorities while maintaining the conservative goal of economic expansion.
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