Talarico wants to end data center tax breaks as part of US Senate bid

Democratic U.S. Senate candidate James Talarico announced his "Hold Data Centers Accountable Plan" during a news conference in Austin, Texas. The plan is a central component of his campaign against Republican U.S. Senate candidate Ken Paxton, targeting the rapidly expanding data center industry in Texas.

Talarico's proposal aims to "end sweetheart tax breaks" for what he describes as "water-guzzling data centers" operated by large companies, arguing that these incentives contribute to skyrocketing electricity and water costs for Texas residents. He highlighted that Texas, currently ranking second nationally in data center numbers, is set to provide approximately $3.2 billion in tax breaks to these facilities over the next two years.

The plan's key policy points include empowering local communities to have a greater say in data center construction, holding data centers responsible for environmental pollution, and requiring AI companies to fund their own electricity and water infrastructure. Talarico emphasized that his initiative seeks to ensure that "AI works for working people" by preventing the costs associated with data center development from being passed on to consumers, which he attributes to a "broken, corrupt political system."