Texas Gov. Greg Abbott said data centers had "dug their own grave" as backlash grew over their rapid expansion.
But since July 2025, his campaign has still taken about $9 million from industry-tied donors, even as he called for tougher oversight and an end to a major tax break.
Here's what to know
According to The Texas Tribune, donors connected to data centers supplied about 13% of the money Abbott raised over that period.
Of that total, $4.9 million came from people or companies that directly develop, own, or operate data centers. Another $4.1 million came from donors with indirect ties through AI, investing, real estate, or infrastructure.
The money kept coming even as Abbott's criticism of the industry intensified. In June, the same month he recommended that lawmakers end a major tax break for data centers, he received $1.5 million from donors linked to data centers.
In August, with a statewide audit underway, he stopped approving data centers seeking to connect to the Texas grid and then brought in another $2.8 million.
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The direct donors included Black Mountain CEO Rhett Bennett and Black Mountain, which together gave $1 million, along with former Fermi America CEO Toby Neugebauer, who contributed $100,000.
The Tribune identified just one donation it classified as data center-related for Abbott's Democratic opponent, Gina Hinojosa: $25,000 from T-Mobile chief operating officer Jon Freier.
More background
Campaign donations are only one part of the fight, as Texas officials also weigh how the industry's rapid expansion could shape electricity demand, water use, and the character of local communities.
As more large facilities look to break ground around the state, those issues have fed bipartisan frustration.
The Tribune also reported that Abbott is in a neck-and-neck race with Hinojosa, who has made the donations a central line of attack, according to the Tribune, saying: "Greg Abbott invited data centers into Texas with the richest tax breaks in the country, took millions of dollars in donations from the data center interests, and has spent months lying to Texans about his record to save his political career.
"Texans know I'll fight for them — not the big corporations — and ensure they have a seat at the table to decide if and how data centers come into their communities."
If the rules governing these projects are shaped by donor influence rather than community needs, residents could face the very consequences lawmakers have warned about: pressure on ratepayers, strain on water infrastructure, and battles over private property rights and community integrity.
What's being done?
Abbott has tried to present a harder line on the issue. His campaign spokesman, Eduardo Leal, told the Tribune: "Governor Abbott has made his position on data centers clear. Data centers must pay their own way, protect Texas' electric grid, bring their own water, and not to disturb the communities where they operate.
"The Governor also directed state agencies to issue no data center-related permits until ERCOT completes its review, and he has also called for ending outdated taxpayer-funded incentives. Those are the standards Governor Abbott has laid out, and those remain his priorities."
Other state leaders are moving on the issue too. In March, Lt. Gov. Dan Patrick told interim committees between legislative sessions to examine data centers' electricity demands and the cost of their sales tax exemption, while weighing impacts on "landowners, private property rights, water infrastructure, and community integrity," per the Tribune.
In late September, he told The Texas Scorecard he wanted to create a special committee on data centers. In October, he backed eliminating the tax break as well.
House Speaker Dustin Burrows has also said he wants data centers to be a major issue in the 2027 session, with a focus on easing regulation and encouraging water-efficient development, the Tribune reported.
The ongoing donations suggest industry players want influence in whatever policy framework comes next. As Jim Henson, director of the Texas Politics Project at the University of Texas at Austin, told the Tribune: "The major players in the industry realized there will be something akin to a negotiated settlement on the relevant policies, and that the governor and his legislative allies will be negotiators of the terms of what emerges. Nobody wants to be left out of the discussions, and continuing to support the governor financially demonstrates the desire to be at the table."
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