
In Senate race, Paxton and Talarico each promise relief from rising energy costs in Texas
Texas Senate candidates Ken Paxton and James Talarico are making rising energy costs and data center expansion central issues in their campaigns. Both support repealing data center tax exemptions and requiring operators to pay for electricity infrastructure, while Talarico would give local governments more authority over data center permits.
Texas Senate candidates Ken Paxton and James Talarico are campaigning on relief from rising energy costs as the state experiences rapid data center growth. Nearly 400 data centers are operating, planned or under construction in Texas, consuming an estimated 17 terawatt-hours of electricity annually and requiring significant water for cooling. The growth has fueled opposition among residents concerned about utility costs, grid capacity and local impacts.
Both candidates support ending data center sales tax exemptions and requiring facilities to fund their own electricity infrastructure. Talarico also favors giving local communities more control over data center approvals and expanding energy assistance for low-income households. Paxton has proposed restricting Chinese technology in U.S. data centers and supports Gov. Greg Abbott's plan for data centers to cover infrastructure costs, but critics point to his past support for the tax exemptions. The candidates remain sharply divided on climate policy, with Paxton opposing federal environmental regulations and Talarico supporting emissions reductions and broader investment in renewable energy.