Ken Paxton, the Republican nominee for US Senate in Texas and current state attorney general, unveiled a datacenter policy platform described as “Texas first” in response to mounting public opposition to the facilities’ development across the state.
The plan includes four main components: prohibiting Chinese technology in US datacenters, imposing criminal liability on companies if artificial intelligence chatbots harm children’s safety, reducing regulatory barriers to prevent datacenter operations from raising electricity bills for Texans, and supporting state-level restrictions on datacenter construction in rural areas. Paxton also pledged to repeal sales tax exemptions for such facilities and ensure they contribute to rather than strain the state’s electrical capacity.
Public sentiment regarding datacenters has shifted significantly. An Annenberg Public Policy Center survey found that 61% of Americans now oppose building new datacenters in their communities, up from 49% in March. Support for opposition spans political affiliations, with 69% of Democrats, 54% of Republicans, and 53% of independents expressing concern. This trend has prompted political figures across the spectrum to reassess their positions on datacenter development.
Paxton faces a competitive race against Democrat James Talarico in what is traditionally Republican territory. A Fox News poll from late July showed Talarico leading 51% to 48%, and the Cook Political Report characterizes the election as a toss-up. Talarico has criticized Paxton’s record, claiming he previously supported datacenter tax incentives worth billions while receiving nearly half a million dollars from the industry. Paxton’s announcement represents an effort to address this criticism and respond to the emerging electoral issue.
Datacenter development has become a point of divergence among national political figures. While Trump has expressed support for the industry, calling opposition “a mistake,” other leaders have moved to restrict expansion. Texas Governor Greg Abbott, who previously promoted the state as the “epicenter of AI development,” acknowledged the backlash and supported restrictions on rural datacenter placement.
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