Data center opponents put Ken Paxton in bind ahead of Senate runoff

Texas Attorney General Ken Paxton is facing a significant political challenge ahead of his Senate runoff, caught between rural Texas voters who are increasingly vocal in their opposition to data center developments and fellow Republican leaders, including Governor Greg Abbott, who advocate for the industry's economic benefits. Fayette County commissioners recently passed a resolution against data center development, while residents in Hood County have expressed strong concerns about the facilities' demands on water and electricity. Although Hood County commissioners narrowly rejected a moratorium on data center construction in February, they, along with other counties, have sought Paxton's legal opinion on whether municipalities possess the authority to halt such projects. This request for clarity puts Paxton in a difficult position, balancing the demands of his traditional rural base against the state's pro-business stance. State Rep. David Cook highlighted public anxiety regarding the rapid pace of development and the potential strain on local resources, while state Sen. Paul Bettencourt championed legislation last year that limits cities' ability to enact moratoriums on large industrial projects like data centers. Meanwhile, local entities such as the San Marcos City Council and College Station City Council have taken direct action, voting down data center projects due to environmental and power supply concerns. This local resistance has prompted internal discussions within the tech industry, with the Data Center Coalition emphasizing the need for better community engagement. The debate unfolds as major tech companies like Oracle and OpenAI embark on significant data center initiatives in Texas, such as the 'Stargate' project in Abilene, and as tech executives actively contribute millions to political campaigns across the state. Paxton is reportedly considering delaying his legal opinion on municipal authority until after the general election in November, underscoring the political sensitivity of the issue.