Democratic Candidate Challenges Texas Data Centers

Democratic U.S. Senate candidate James Talarico took the stage at a CNN town hall on Wednesday to criticize the expansion of data centers in Texas. He argued that companies, rather than communities, should cover the costs tied to these developments. His comments are part of a broader campaign strategy, aiming to become the first Democrat to win a Texas Senate seat since 1988.

His opponent, Republican Ken Paxton, Texas Attorney General, is linked to the burgeoning data center industry in Texas. Talarico has voiced concerns that Texans may face increased utility costs while developers benefit. Data shows Texas and Virginia leading the country’s data center growth, with Texas hosting nearly 700 facilities, per Cleanview data tracker.

“I was in Abilene discussing with residents—both Democrats and Republicans—about the construction of three massive data centers,” said Talarico at the town hall.

Talarico has put forth plans to regulate data centers, advocating they pay for their energy and recycle water to address Texas’ water crisis. He insists companies should seek community consent before building.

Data Centers and Midterm Elections

Data centers are a prominent issue in the upcoming elections. The projects have sparked opposition due to their high resource consumption and environmental footprint.

In July, Talarico announced tighter regulations for data centers at a news conference. His proposals include setting federal standards, repealing sales tax exemptions for data centers, and making large energy users fund their infrastructure.

He emphasized empowering residents to participate in construction decisions and holding centers accountable for water pollution.

Recently, Talarico released a TV ad targeting Paxton’s connections with the data center sector. “Ken Paxton is selling off Texas—our land, water, and communities—all for profit,” he stated, accusing Paxton of granting tax breaks to data centers that, in turn, made sizable campaign contributions to him.

Ken Paxton’s Support for Data Centers

Paxton champions data center development, emphasizing Texas has plenty of open space for facilities away from residential areas. He has argued these projects offer well-paid jobs and bolster the economy.

Paxton supports measures ensuring centers don’t drain the electric grid or raise utility rates for locals. He advocates for water recycling requirements.

A four-point proposal from Paxton’s campaign addresses data center concerns, including banning Chinese technology in centers and holding companies accountable if centers facilitate AI chatbots that harm children’s safety.

Among the plan’s highlights, Paxton supports a proposal from Texas Governor Greg Abbott to forbid data centers in rural areas and repeal specific tax exemptions.

Impact on Texas Senate Race

Political analysts see potential for Talarico to gain support from Republican-leaning voters on this issue, especially those in rural or suburban areas. Professor Brandon Rottinghaus believes diverse groups may find common ground.

“He doesn’t need these voters to become Democrats; he just needs them to reassess their support for Paxton,” said Rottinghaus.

However, some experts note Paxton and Talarico aren’t vastly apart on the topic. Professor Cal Jillson pointed out their shared concerns about rates, water usage, noise, and proximity to schools.

Following elections, policy might converge on promoting data centers with reasonable restrictions, Jillson added.

Polling Insights

Recent polls indicate a competitive Senate race in Texas. Talarico holds a slim lead over Paxton according to several surveys.

A Marist poll shows Talarico leading by 47 percent to Paxton’s 45 percent among likely voters. The advantage narrows among registered voters.

Polling also reveals variable leads for Talarico in different surveys, reflecting the tight nature of the race.