Texas Gov. Greg Abbott (R) dismissed claims that Chinese disinformation is fueling U.S. opposition to data center construction.
In a Fox News interview Friday, host Will Cain asked Abbott whether “real concerns” about data centers were being manufactured by China. Abbott acknowledged Beijing is attempting to shape the narrative, but said his own actions weren’t influenced by it.
Moratorium Rooted in Local Pushback, Not Foreign Influence
“I haven’t done it because of anything said by China,” Abbott said, referring to his recent moratorium on data center construction. He said the decision followed direct engagement with constituents facing real issues in their communities.
Abbott has separately said data-center developers "dug their own grave" by moving too quickly without engaging local communities, as a recent Heatmap Pro poll found 75% of Americans would oppose a new data center being built near where they live.
Abbott has not taken a soft stance toward China overall. In January, he banned Texas state employees from using Alibaba Group Holding Ltd. (NYSE:BABA), Baidu Inc. (NASDAQ:BIDU) and other Chinese-linked technology companies over data security concerns.
Stance Splits Abbott From Trump
Abbott’s position has put him at odds with President Trump, who called Texas’s stance a “mistake” in August, arguing data centers “could be bigger than oil.” Texas Senate nominee Ken Paxton has since embraced Abbott’s approach, breaking from Trump ahead of the midterms. Republicans nationally are recalibrating as data centers emerge as a top midterm issue.
X’s Bot Farm Disclosure Fuels Industry Pushback
Abbott’s interview followed a Thursday disclosure from X, which said it identified a 200,000-account Chinese bot network. X said a few hundred accounts spread negative content about data centers in ways that could distort the American AI and energy policy debate.
The disclosure prompted some tech-industry figures to argue that foreign influence may be amplifying opposition to data centers, though the findings do not establish that the broader U.S. backlash is driven by Chinese accounts.
The concerns aren’t partisan. Rep. Ro Khanna (D-Calif.) has separately criticized the industry, saying data-center operators are shifting infrastructure and energy costs onto residents and ratepayers.
Billionaire investor Mark Cuban also echoed that sentiment, calling data centers “a proxy” for broader public anxiety over AI and wealth concentration.
Billions in AI Projects Hang
The financial stakes underline why the debate matters to markets. Data Center Watch reported roughly $130 billion worth of AI data center projects were blocked or delayed nationwide in the first quarter of 2026 alone, as opposition groups more than doubled since late 2025.
Even so, spending has not slowed. U.S. technology companies committed more than $850 billion to data center leases in the first quarter of 2026, led by Oracle Corp. (NYSE:ORCL), Meta Platforms Inc. (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT).
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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