Texas Governor Abbott Rebuts Claims of Chinese Influence on Data Center Opposition

Texas Governor Greg Abbott pushed back against claims that Chinese disinformation is fueling U.S. opposition to data center construction.

In a Friday interview on Fox News, host Will Cain asked Abbott whether the "real concerns" about data centers are manufactured by China. Abbott acknowledged Beijing is attempting to influence the narrative but said his actions are not swayed by it.

Pause Order Rooted in Local Opposition, Not Foreign Influence

"I didn't do this because of something China said," Abbott said, referring to his recent decision to pause data center construction. He said the move came after directly engaging with local communities facing real problems.

Abbott previously stated that data center developers were "digging their own graves" by moving too fast without proper community outreach. A recent Heatmap Pro poll found that 75% of Americans would oppose a data center being built near their homes.

Overall, Abbott has not taken a weak stance toward China. In January, he banned Texas state employees from using technology from Alibaba Group Holding Ltd., Baidu Inc., and other China-linked tech companies.

Stance Creates Rift with Trump

Abbott's position has put him at odds with former President Donald Trump, who in August called the pause order a "mistake" and said data centers "could be bigger than oil." Texas Senate candidate Ken Paxton later adopted Abbott's approach, breaking with Trump. As data centers become a top issue in the midterm elections, the Republican Party is recalibrating its position.

X Discloses Bot Farm, Intensifying Industry Backlash

Before Abbott's interview, X disclosed on Thursday that it had identified a Chinese bot network operating 200,000 accounts. X said hundreds of accounts were spreading negative content about data centers, potentially distorting the U.S. policy debate on AI and energy.

The disclosure has led some tech industry figures to suggest foreign influence may be amplifying opposition to data centers, though the findings do not confirm that broader U.S. backlash is driven by Chinese accounts.

These concerns are not strictly partisan. Congressman Ro Khanna has separately criticized the industry, saying data center operators are shifting infrastructure and energy costs onto residents and ratepayers.

Billionaire investor Mark Cuban has expressed similar views, calling data centers "a proxy" for broader public anxiety over AI and wealth concentration.

Billions in AI Data Center Projects Hang in the Balance

The financial stakes explain why this debate matters so much to the market. According to Data Center Watch, approximately $130 billion in AI data center projects across the U.S. were blocked or delayed in Q1 2026 alone, with opposition groups doubling in number since the end of 2025.

Even so, spending has not slowed. In Q1 2026, U.S. tech companies committed over $85 billion to data center leases, led by Oracle Corp., Meta Platforms Inc., and Microsoft Corp.