Paxton's Plan
Ken Paxton, the Texas attorney general and Republican contender for the U.S. Senate, introduced a four-point initiative on Monday called the 'Texas First Data Center Plan' to counter the 'negative impact' of data centers. The proposal includes drafting federal legislation to ban Chinese technology in American data centers, imposing criminal liability on companies whose AI chatbots harm children, and backing Governor Greg Abbott's state-level restrictions on rural construction and incentives.[S1][S2][S3]
Paxton also pledged to co-sponsor the DATA Act, which would allow data centers to build their own power plants, and to repeal sales tax exemptions, requiring centers to fund their own electricity and use closed-loop water systems. The plan stops short of a moratorium on new projects, instead focusing on regulation and infrastructure changes.[S2][S4][S5]
Political Context
The announcement comes amid a growing backlash against data centers, with an Annenberg survey showing 61% of Americans oppose new centers in their area, up from 49% in March. This includes majorities across party lines. Governor Abbott, who previously touted Texas as the 'epicenter of AI development,' recently said tech companies 'dug their own grave' and deserve backlash.[S1]
Paxton, endorsed by Donald Trump, faces a tight race against Democrat James Talarico. A Fox News poll showed Talarico leading 51% to 48%, and the Cook Political Report calls it a toss-up. Paxton has faced scandals including impeachment and divorce, while Talarico has attacked him for accepting campaign contributions from the data center industry.[S1][S5]
Reactions and Implications
Talarico, who has his own plan to hold data centers accountable, accused Paxton of hypocrisy, noting his past support for tax breaks and donations from the industry. He said Paxton is 'scared' and making a 'sad attempt' to reverse course. Texas GOP strategist Brendan Steinhauser said the plan helps Paxton politically but questioned its technical feasibility.[S1][S2][S5]
The issue is resonating nationally, with politicians like Pennsylvania Governor Josh Shapiro and Senator Bernie Sanders taking stances. The National Republican Senatorial Committee warned that voter discontent could cost the party a Senate seat in Ohio. Trump, however, has expressed support for data centers, saying communities that want them benefit financially.[S1]
