# Data Centers and AI Debate Heats Up in Texas Senate Race

Regulations on data centers and artificial intelligence take center stage in the election campaign.

- **Source:** [Gizmodo](https://brifing.si/source/63382431-cef0-4c41-883e-2f88dc21351e)
- **Published:** 2026-08-24
- **Topic:** [Business](https://brifing.si/c/business)
- **Original article:** <https://gizmodo.com/scandal-plagued-texas-ag-pivots-to-anti-data-center-platform-in-senate-race-2000802313>
- **On Brifing:** https://brifing.si/s/c17a1c8b-63fb-4cc3-8624-5e36fcb56e00

## Paxton's Four-Point Plan

Texas Attorney General Ken Paxton announced plans to tighten regulations on AI data centers if elected to the Senate. His 'Texas First Data Center Plan' includes banning centers using Chinese technology and holding companies criminally liable for AI chatbots threatening child safety. The proposal aims to regain voter support amid growing public backlash against data centers.

## Talarico's Competing Proposal

Paxton's opponent James Talarico promises more comprehensive measures against data centers. His platform includes repealing Texas's data center tax exemption, mandating water reuse quotas, and granting local communities veto power over projects. Talarico dismissed Paxton's plan as 'a sad attempt to reverse course' in comments to Fox News, highlighting their policy differences.

## Growing Public Backlash

Anti-AI and data center sentiment has surged in recent months. Rural communities face rising utility bills, water shortages, and pollution complaints. Public figures including the Pope have expressed concerns about AI's impact on economy, warfare, and mental health. NBC News polls suggest this issue could become decisive in November's midterm elections.

## Texas' Data Center Density

According to Data Center Map, Texas hosts the second-highest number of data centers after Virginia. Major AI infrastructure projects like OpenAI's Stargate in Abilene and SpaceX's chip fabrication plant in Austin cluster in the state. These support Elon Musk's ambitious vision for an orbital data center colony, intensifying local infrastructure demands.

## DATA Act and Energy Regulations

Paxton pledged to co-sponsor Senator Tom Cotton's DATA Act, incentivizing off-grid power solutions for data centers. He also vowed to aggressively support Governor Greg Abbott's regulatory measures. Abbott recently ordered audits of data center projects seeking grid connections, reflecting heightened scrutiny of the industry's energy consumption.

## Trump's Industry Support

Former President Trump remains a staunch AI industry ally, praising data centers for creating 'tremendous jobs and money' in a recent interview. His administration has worked to remove regulatory obstacles, including EPA exemptions for off-grid power plants. This creates tension for MAGA-aligned candidates balancing Trump's stance with constituent concerns.

## Governor Abbott's Criticism

Texas Governor Greg Abbott claimed AI companies 'dug their own grave' during a Sunday TV appearance. Acknowledging justified public anger, Abbott directed increased oversight of data center projects. His administration now requires audits for grid connections, marking a policy shift as election pressures mount over infrastructure and environmental impacts.

## Election-Deciding Issue

AI and data center regulations have emerged as pivotal issues in Texas' Senate race. Both Paxton and Talarico scramble to address voter concerns while navigating complex political allegiances. With Trump's pro-industry stance conflicting with grassroots anger, MAGA candidates face delicate balancing acts. The November midterms may hinge on this increasingly polarized debate.

## Sources covering this story

- https://gizmodo.com/scandal-plagued-texas-ag-pivots-to-anti-data-center-platform-in-senate-race-2000802313 — 

---

_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._
