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Paxton Unveils Plan to Regulate Texas Data Centers

Texas Attorney General and Senate candidate Ken Paxton says he is drafting a law to keep America ahead in the artificial intelligence (AI) race while protecting Texans from the negative impacts of data centers.

The longtime Texas politician said the proposal would prohibit the use of Chinese technology to power American data centers, according to an Aug. 24 press release.

Paxton, who is running against state Sen. James Talarico, a Democrat, after defeating current Sen. John Cornyn (R-Texas) in the primary, said the legislation would “protect children by holding data center companies criminally liable if the center empowers AI chatbots that undermine children’s safety.”

The attorney general said that he and Texas Gov. Greg Abbott, a Republican, both intend to prohibit AI data center construction in rural Texas neighborhoods and to require practices that will reduce their impact.

“Texans deserve a fighter to lead and represent them as we address the growing presence of data centers in Texas and stop their negative impact on our neighborhoods,” Paxton said. “While James Talarico and his campaign infrastructure accept millions of dollars from data center-affiliated donors and put their interests first, I will lead with Texans at the forefront.”

Included in the list of concerns are possible noise and light pollution, and traffic congestion.

Paxton also promised to repeal sales tax exemptions and other “outdated incentives” for data center construction, and to reevaluate infrastructure priorities regarding issues such as electricity use.

He promised to require the data centers to “fund their electricity and ensure they are adding to Texas’ electric capacity, not detracting from it, and mandate closed-loop water systems for cooling.”

The Senate candidate also promised to cosponsor the current proposed federal DATA Act (S. 3585), which was introduced in January of this year by Sen. Tom Cotton (R-Ark.). The bill would eliminate unnecessary regulation to create new power systems so that data centers don’t raise electricity costs for consumers.

Talarico also plans to address data centers, according to his platform. The Democratic nominee says on his campaign website he would require all “large energy users like AI data centers to cover the cost of the energy infrastructure updates they need so those costs aren’t passed onto consumers.”

Talarico also said he plans to “crack down on energy price gouging during natural disasters and other emergencies.” Additionally, he says he will modernize the Low Income Home Energy Assistance Program to ensure that hot climate areas “receive equitable funds to help families with utility costs.”

The Democrat responded to Paxton’s plan, alleging that Paxton has allowed the data center industry to “flood Texas” with data centers through tax breaks.

In an X post on Aug. 24, Paxton said that his first plan will “protect [Texas’s] grid, our communities, and our children while ensuring America beats Communist China in the AI race.”



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