Ken Paxton clarifies support for data centers: 'This is a yes with conditions'
Texas Attorney General Ken Paxton clarified his support for data centers, advocating for conditions that prevent strain on the electric grid and require water recycling. He proposes legislation to ban AI data centers in rural neighborhoods and ensure they don't increase rates for other consumers. Paxton emphasized the economic benefits while acknowledging voter concerns regarding energy and water supplies.
Texas Attorney General Ken Paxton, a Republican U.S. Senate nominee, clarified his conditional support for data centers, citing their economic benefits and high-paying jobs during an interview with the U.S. Hispanic Business Council in Fort Worth. Paxton stated that while data centers are crucial for the country's economic and AI competitiveness, they must operate under restrictions to prevent burdening the electric grid and exacerbating water issues. He advocates for requirements like centers recycling their own water and not using the public electric grid in ways that raise rates for others.
The issue of data center development has become a significant talking point in Texas, dividing voters across political parties, especially impacting Republican candidates whose rural constituents often oppose data centers due to concerns over local energy and water supplies. Texas currently ranks second nationally for data centers, with 296 operating and 170 more planned.
Paxton's campaign recently released a plan to mitigate the negative impacts of data centers. This plan includes advocating for legislation to prevent the use of China-made technology in data centers, supporting new power systems to avoid rate increases, and backing Gov. Greg Abbott's proposal to ban AI data centers in rural Texas neighborhoods. Paxton also questioned the practice of building these facilities near residential areas, suggesting ample open space exists elsewhere in Texas.
Gov. Greg Abbott has already instituted a pause on data center permits, initiating audits on projects and their electricity consumption, and has urged state electricity regulators to protect ratepayers from increased energy costs due to data center demand. Paxton's office has also launched investigations into data centers that failed to respond to a state water use survey and one potentially proposed on public parkland. Democratic U.S. Senate candidate James Talarico has echoed calls for a pause and stricter regulations, aligning his July plan with Abbott's proposals.