Texas Attorney General and Senate candidate Ken Paxton is centering his campaign platform on addressing data center impacts on grid reliability and power purchasing.
Texas Attorney General Ken Paxton, the Republican nominee for U.S. Senate, unveiled a four-point plan Monday to restrict data center development. The proposal emerges as concerns over electricity costs, water consumption, and impacts on local communities have become a central issue in the state’s closely watched Senate race.
Paxton pledged to “fiercely advocate” for Republican Governor Greg Abbott’s state-level data center initiatives and to sponsor or support corresponding federal legislation targeting the industry. The plan mandates barring Chinese technology from powering U.S. data centers and imposes criminal liability on developers whose infrastructure “empowers AI chatbots that undermine children’s safety.” Additionally, the proposal aligns with Abbott’s efforts to block new data centers in rural neighborhoods, phase out state sales tax exemptions, and require facilities to add dedicated generating capacity instead of merely increasing demand on Texas’ electric grid.
“My Texas First Data Center Plan will protect our grid, our communities, and our children while ensuring America beats Communist China in the AI race,” Paxton wrote in a post on X. “Texas First. Always.”
Paxton also announced plans to co-sponsor the Decentralized Access to Technology Alternatives Act, legislation introduced by Senator Tom Cotton (R-Ark.). The bill would exempt newly created electricity systems serving new loads from certain federal regulations, provided they are physically separated from regulated utilities and the bulk-power grid. Proponents argue that incentivizing large consumers to develop independent power supplies could prevent infrastructure costs from being passed on to residential ratepayers.
Governor Abbott initiated a tighter regulatory approach in June, directing the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to mandate that data centers cover the full cost of the electrical infrastructure required for their operations. Abbott also mandated water-efficient cooling systems, comprehensive reporting of water and power consumption, a phaseout of outdated tax incentives, and safeguards against noise and other neighborhood disruptions. On August 3, Abbott ordered a comprehensive audit of data center projects seeking connection to the ERCOT grid, effectively halting further approvals pending the review’s completion. Currently, data centers represent approximately 90% of the 474 gigawatts in pending requests for new power capacity.
Democratic nominee State Representative James Talarico has similarly advocated for stricter regulation, proposing caps on electricity costs and water usage, expanded local oversight, and the elimination of tax breaks for major technology firms. His campaign has accused Paxton of reversing his position after previously endorsing industry incentives. The policy clash unfolds ahead of the November 3 general election, which could influence control of the U.S. Senate. Paxton secured the Republican nomination in May after defeating longtime Senator John Cornyn (R-Texas) in the party’s runoff. The Cook Political Report classifies the contest as a toss-up, marking an unusually competitive matchup for a state where Democrats have not won a statewide office in over three decades. A Fox News poll conducted between July 23 and 27 found Talarico leading Paxton 51% to 48% among 1,006 registered voters, within the survey’s 3-percentage-point margin of error.