Texas Senate Candidates Propose Data Center Regulations Amid Power and Water Concerns
A heated political battle is underway in Texas between Attorney General Ken Paxton and State Senator James Talarico, both vying for a Senate seat and proposing plans to regulate the state's data center boom. Concerns over rising power and water costs, along with campaign donations, are central to the debate. Texas Governor Greg Abbott has already issued a directive halting approximately 1,800 data center projects.
A significant political conflict is unfolding in Texas regarding data center development, with Attorney General Ken Paxton and State Senator James Talarico — both candidates for a Senate seat — introducing competing plans to curb the state's AI and data center expansion. The debate centers on increasing power and water costs, which have become a key political issue for voters.
Texas Attorney General Ken Paxton's four-point plan, obtained by Fox News Digital, outlines federal and state-level actions. His proposals include authoring Senate bills to prevent Chinese technology in American data centers and infrastructure, establishing criminal liabilities for data center companies if their AI platforms endanger children, and co-sponsoring Senator Tom Cotton's DATA Act to allow data centers to produce independent power. Paxton also seeks to reverse sales tax exemptions for data centers, a policy he supported a decade ago.
Democratic nominee James Talarico has also unveiled his own measures, which include repealing state tax exemptions for data centers, mandating that data centers bear 100% of grid connection costs, requiring closed-loop water recycling systems, and granting local governments veto power over project developments. Talarico's campaign has criticized Paxton for receiving nearly $500,000 from data center-affiliated PACs, while Paxton has accused Talarico's political operation of accepting millions from data center advocates like LinkedIn co-founder Reid Hoffman.
Adding to the regulatory landscape, Texas Governor Greg Abbott recently issued a directive to effectively freeze data center expansion in the state. Abbott claims this directive has already halted approximately 1,800 data center projects. His directive mandates data centers disclose their power and water consumption, details of independent power production, financial incentives received, plans to mitigate community impact, and documented ownership.