Free Power Bills: Texas Sen. Ted Cruz Pitches Direct Checks To Win Over Data Center Critics

Texas Senator Ted Cruz proposed that tech companies developing data centers should provide direct cash payments or cover local power bills to mitigate growing community opposition. Speaking on Bloomberg’s Balance of Power: Evening Edition, the Texas Republican addressed rising pushback against data center construction across the nation and within his home state, where leaders like Gov. Greg Abbott and Attorney General Ken Paxton have voiced concerns over resource demands.

Cruz asserted the critical importance of American leadership in artificial intelligence but acknowledged the validity of local concerns regarding resource consumption and utility expenses. He suggested that foreign interests, specifically referencing China and businessman Neville Roy Singham, are actively funding some of the anti-data center sentiment, aiming to impede U.S. AI development. However, Cruz clarified that genuine voter apprehension in Texas primarily revolves around two practical issues: water and electricity.

The senator supported state measures to protect community water supplies, noting that modern facilities often use closed-loop cooling to minimize water consumption. Regarding electricity, Cruz highlighted a 30 percent increase in rates since 2021 and backed Gov. Abbott’s stance that new facilities should not inflate local power costs. He urged data center companies to go further, suggesting benefits like monthly checks or free electricity for residents to significantly improve public perception of large-scale digital infrastructure.