Key facts
- Ken Paxton, a Republican candidate for the US Senate in Texas, has proposed a four-point plan to regulate data centers.
- The plan aims to ban Chinese technology in US data centers, hold AI companies criminally liable for undermining children's safety, and prevent data centers from increasing Texans' electricity bills.
- Paxton also supports banning new data centers from rural areas and repealing sales tax exemptions for them.
- A recent survey indicates 61% of Americans oppose new data centers in their vicinity, a sentiment shared by a majority across party lines.
- Paxton's Democratic opponent, James Talarico, has criticized Paxton's past support for the data center industry and its tax incentives.
Texas Republican Senate candidate Ken Paxton has unveiled a "Texas first" plan to address public concerns and backlash against data centers, a move that comes amid a growing political debate over their environmental and economic impact. Paxton, who has received an endorsement from Donald Trump, outlined a four-point strategy on X, which included banning Chinese technology from powering US data centers, holding AI companies criminally liable if their chatbots endanger children, and implementing measures to prevent data centers from increasing Texans' electricity bills.
Paxton's proposal also includes supporting Governor Greg Abbott's state initiatives to prohibit new data centers in rural areas, revoke sales tax exemptions, and ensure they contribute to, rather than deplete, Texas's electricity capacity. This initiative appears to be an effort by Paxton, a right-wing populist, to counter potential electoral disadvantages stemming from the data center issue, especially as his Democratic opponent, James Talarico, advocates for stricter regulations and an end to favorable tax deals for tech companies.
Talarico has criticized Paxton, alleging he has accepted significant donations from the data center industry and previously supported policies that benefited them. He accused Paxton of a "sad attempt" to reverse his stance due to electoral pressure, noting that Paxton's plan was flagged as "Made with AI" by X. The race in Texas is reportedly tight, with some polls showing Talarico in the lead.
The broader political landscape reflects a growing unease with data centers, which are criticized for their high consumption of electricity and water, potential environmental harm, and limited job creation. A recent Annenberg Public Policy Center survey found that a majority of Americans now oppose new data centers in their communities. This sentiment has prompted actions from other politicians, such as Pennsylvania Governor Josh Shapiro, who signed an executive order imposing strict guardrails, and Senator Bernie Sanders, who has called for a pause in AI development. However, Donald Trump has expressed support for the industry, viewing opposition as a potential mistake.