Trump-backed Ken Paxton unveils ‘Texas first’ datacenter plan aimed at ‘negative impact’
Developed over time first seen 2 months ago
Ken Paxton, the Trump-backed Republican Senate candidate in Texas, unveiled a "Texas first" datacentre plan aimed at curbing the "negative impact" of the facilities, prompting a sharp response from Democratic rival James Talarico, who accused him of hypocrisy given nearly $500,000 in industry donations and past votes for billions in tax handouts to datacentre firms. The row highlights how datacentres have become a genuine flashpoint in the tight Texas Senate race, with a late-July Fox News poll putting Talarico ahead 51% to 48% and the Cook Political Report rating the contest a toss-up, a notable position for a seat that is normally safely Republican.
Paxton's four-point plan included banning Chinese technology in US datacentres, holding firms criminally liable if AI chatbots harm children's safety, and cutting regulation to prevent electricity bills rising, but was undercut when the graphic he posted on X was flagged by the platform as "Made with AI". Talarico seized on this, calling the plan a "sad attempt to reverse course". The dispute reflects a broader national shift: an Annenberg Public Policy Center survey found 61% of Americans now oppose new datacentres in their area, up from 49% in March, spanning 69% of Democrats, 54% of Republicans and 53% of independents, while Governor Greg Abbott said tech firms had "dug their own grave" on the issue. Paxton also continues to face scrutiny over a 2023 impeachment (later acquitted), a dismissed securities fraud indictment, and his wife's 2025 divorce filing citing adultery.
- Paxton unveils Texas datacentre plan, but graphic was flagged as AI-made.
- Rival Talarico calls it hypocritical, citing Paxton's industry donations and tax votes.
- Texas Senate race is a toss-up amid growing US backlash against datacentres.
New here? Start with this
Ken Paxton is the sitting Texas attorney general and is now running as the Republican candidate for a US Senate seat, with backing from Donald Trump. He is competing against Democrat James Talarico in a race widely seen as close ahead of November's midterm elections.
The row centres on datacentres, the large facilities that power AI and cloud computing services, which use huge amounts of electricity and water. As more of these are built, particularly in Texas, local residents and politicians on both sides have raised concerns about rising energy bills and strain on resources, with national polling suggesting public opposition has grown sharply over the past few months.
This has put Republican politicians, including Texas governor Greg Abbott, under pressure to respond to voter unease without appearing hostile to the tech industry. Paxton's proposals are part of that wider effort, though he also carries separate political baggage, including a past impeachment, a dropped fraud case and a divorce filing, all of which could shape how voters view his candidacy.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Proponents of a more restrictive, 'Texas first' approach to datacentres argue that communities are right to demand a say when huge facilities strain local electricity grids, drive up water use and household energy bills, and reshape neighbourhoods with little visible benefit to residents beyond a handful of jobs. They contend that elected officials have a duty to ensure the AI boom's costs are not quietly socialised onto ordinary ratepayers while profits flow to large tech firms, and that tightening incentives or adding local safeguards is a reasonable response to fast-rising public concern across party lines. From this view, scepticism of the industry is not populist opportunism but a legitimate correction after generous tax breaks were extended without adequate consideration of community impact.
The case against
Defenders of a more welcoming approach to datacentre investment argue that these facilities bring substantial capital investment, construction jobs and long-term tax revenue that can fund schools and infrastructure, and that Texas's growth has long depended on being an attractive place for industry to build. They would say that tax incentives, including those Paxton has supported, were reasonable tools to compete for investment against other states, and that swinging toward restriction now risks driving jobs and revenue elsewhere just as AI infrastructure becomes strategically important. On the political dimension, Paxton's allies could reasonably argue that using modern tools like AI-generated graphics is a minor stylistic choice unrelated to the substance of the plan, and that attacking it is a distraction from genuine policy debate.