James Talarico proposes regulations for data center industry
State Representative James Talarico is proposing new regulations for the data center industry in Texas, focusing on ending tax exemptions and mandating companies pay for their own energy, water, and infrastructure. He also calls for federal environmental standards and local community input. The proposals come amid growing sentiment against data centers and an upcoming Senate panel discussion.
Texas State Representative James Talarico, a Democratic US Senate nominee, has outlined proposed regulations for the data center industry in Texas. Talarico, addressing a growing bipartisan discontent with data centers, aims to curb what he describes as "sweetheart tax exemption deals" that cost the state billions of dollars. He stated that Texas is currently too welcoming to these developments, which currently number around 300 across the state with approximately 100 more in development.
Talarico's plan includes mandates for data centers to cover their own energy, water, and infrastructure costs. He also advocates for new federal environmental and job standards, emphasizing the need for local communities to have a voice in decisions regarding data center construction within their towns. While not going as far as some Democrats in calling for a statewide moratorium, Talarico criticized his Republican opponent, Texas Attorney General Ken Paxton, for allegedly receiving significant political donations from data center companies. KVUE's attempts to reach Paxton's campaign for comment were unsuccessful.
The discussions at the Texas Capitol reflect ongoing efforts by state lawmakers to manage data center growth. Legislators are attempting to balance the economic benefits of the industry with concerns about its impact on water resources, infrastructure, and local communities. A Texas Senate panel is scheduled to continue these discussions in a hearing next week.