Nvidia CEO Urges Community Ties as Texas Halts Data Centers

Nvidia CEO Jensen Huang stated that the technology industry must improve its collaboration with communities to facilitate the build-out of AI infrastructure. Speaking on CNBC, Huang argued that data center construction could help reindustrialize the United States and potentially lower national energy costs by driving investment into sustainable energy and grid improvements.

These comments follow growing public skepticism and regulatory pushback. Texas Governor Greg Abbott has imposed an effective moratorium on new data center construction pending a comprehensive state audit, claiming the industry deserves the resulting public backlash.

While some reports suggest expansion could increase electricity costs, researchers at the Massachusetts Institute of Technology found that data centers shifting power consumption to off-peak hours could reduce average energy costs by 2% to 5% in specific regions. Financially, Nvidia reported $89 billion in data center revenue for the second quarter of FY 26, representing a 117% year-over-year increase.