Texas Attorney General Ken Paxton unveils the ‘Texas First’ data center plan designed to prioritize grid stability and community protection during rapid AI infrastructure expansion.
Republican U.S. Senate candidate and Texas Attorney General Ken Paxton has unveiled a strategy to shield Texas’ power grid and local communities from the operational challenges of data centers, while simultaneously positioning the United States to outpace China in the artificial intelligence race. On Monday, Paxton released his “Texas First Data Center Plan,” which outlines four core proposals designed to mitigate the financial and infrastructural burdens on residents without stifling industry growth.
The first component involves drafting federal legislation that would prohibit the use of Chinese technology to power American data centers or construct their infrastructure. This measure complements existing Texas state law, which already bans designated adversarial nations—including China, Russia, Iran, and North Korea—from purchasing or acquiring real property within the state.
Second, the plan calls for legislation that would hold data center companies criminally liable if their facilities supply power to AI chatbots that undermine children’s safety. Under this framework, operators would face legal consequences for enabling platforms deemed harmful to minors.
Third, Paxton plans to co-sponsor the proposed DATA Act, originally introduced by Republican Senator Tom Cotton of Arkansas. The bill would allow data center operators and heavy manufacturers to build dedicated local power plants for their facilities. It would also establish a new regulatory classification for “consumer-regulated electric utilities,” permitting these independent power systems to operate separately from the national grid.
Fourth, the plan supports Governor Greg Abbott’s initiative to prohibit data centers from developing in rural Texas neighborhoods. The proposal requires adherence to best practices aimed at reducing local disruptions, including the deployment of noise-reduction technology, lighting controls, and targeted traffic improvements.
Beyond these four pillars, the plan recommends repealing sales tax exemptions and other fiscal incentives currently granted to data centers. It also mandates that these facilities fully fund their own electricity generation rather than drawing power from Texas’ public grid.
“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 in a press release. “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. That’s exactly why I am proud to release my Texas First Data Center Plan that will put Texans first and protect our communities.”
“There’s no doubt in my mind that the United States will beat the Chinese Communist Party in the AI race. This plan will ensure that happens while putting Texas first, protecting our culture and land, and safeguarding our families and communities. My plan will also work to ensure data centers are not utilized to power AI platforms that endanger our children,” the attorney general added.
Emily Medeiros is the Texas Correspondent for The Daily Signal.