Paxton, Talarico lay out competing plans for Texas data center boom
Texas Senate candidates Ken Paxton and James Tallarico are presenting differing plans for regulating the rapidly growing data center industry in Texas. Their proposals address issues such as tax exemptions, environmental safeguards, and local control over data center developments. This highlights data center regulation as a significant issue in the upcoming election.
The issue of AI data centers has become a major focus in Texas political races, with senatorial candidates Ken Paxton and James Tallarico outlining their respective plans for regulating the industry.
Paxton's proposals include banning Chinese technology from data centers and holding data center companies accountable for AI chatbots that endanger children. He also supports the 2026 Data Act, which would grant some data centers exemptions from federal energy regulations while allowing them to generate their own electricity. Additionally, Paxton seeks to repeal tax exemptions for these companies and back a ban on AI data centers in rural Texas.
His opponent, James Tallarico, advocates for empowering local officials with the authority to approve or reject data center developments. Tallarico also proposes establishing federal requirements for transparency and implementing environmental safeguards for data centers. Both candidates agree that data center companies should cover their own infrastructure costs and that existing tax breaks for these entities should be eliminated.
This marks the first time Paxton has presented a comprehensive plan for data centers, underscoring the increasing prominence of this issue in the current election season. KENS 5 reporter Rania Court noted that the topic was also discussed by gubernatorial candidates and that Paxton is expected to elaborate on his plans during a campaign stop in Universal City.