Texas Senate Race Intensifies Over Data Center Controversy

Texas Democratic Senate hopeful Representative James Talarico criticized Republican Attorney General Ken Paxton on Monday. Talarico accused Paxton of using AI to illustrate a plan addressing data centers, an issue that has become contentious ahead of the midterm elections.

Data centers have stirred political debate, with concerns about their construction and impact. These facilities may strain community resources like water and power. Candidates are now positioning themselves against these centers, trying to resonate with voters of all political affiliations.

On Monday, Paxton shared his data center plan on X. It sparked a reaction, with accusations of AI use in its creation. Talarico’s campaign quickly responded, alleging Paxton’s failure to address voter concerns.

Ken Paxton has taken nearly half a million dollars from the data center industry, voted to flood Texas with data centers by giving them billions in tax handouts, and has refused to use his power as attorney general to respond to Texans’ requests to block data center development in their communities. Now he’s scared his ties to big data center companies will lose him the election, so he’s making a sad attempt to reverse course by releasing a plan he used AI to make. Texans can’t afford a Senator who’s bought by big data center companies; Texans can’t afford Ken Paxton’s corruption.

Newsweek reached out to Paxton’s campaign for comment.

Paxton’s AI-Based Plan

Paxton’s post states that his plan prioritizes Texas. His Texas First Data Center Plan aims to shield the grid, communities, and children, while competing against China in the AI race. The plan proposes federal legislation prohibiting Chinese tech in American data centers, and suggests criminal liability for AI systems that may compromise children’s safety.

Paxton advocates a deregulatory federal approach. He plans to co-sponsor the DATA Act, reducing regulatory hurdles, expanding power generation, and managing electricity costs. The act would streamline permitting and modernize rules for the growing industry. Paxton also supports tightening oversight of data center projects, as proposed by Republican Texas Governor Greg Abbott.

Within the plan, restrictions are proposed for AI-focused data centers in rural areas. Operators must reduce noise and light pollution, minimize traffic impact, and maintain better coordination during grid stress. Tax exemptions and incentives would be reviewed, with centers mandated to pay for necessary electricity infrastructure and contribute to additional capacity. Water systems must adopt closed-loop cooling methods.

Data Centers as a Midterms Issue

Data centers are becoming a contentious national issue, including in Texas. Critics voice concerns about energy demand, water consumption, and the impact on communities. Voter concerns about AI’s role in driving electricity costs, water strain, and rural transformation are prominent in Texas and other battleground states.

Texas has aggressively pursued data center development for years. Critics argue these facilities stress the electric grid, consume large water amounts, and alter rural environments. Supporters argue benefits include job creation, investment, and tech leadership. Governor Abbott has introduced oversight measures and audits, while lawmakers gather public input on noise, pollution, demand, and control.

Paxton’s plan addresses these concerns by suggesting data centers cover more infrastructure costs, removing tax incentives, and restricting rural development. Paxton balances these with continued industry growth, regulatory streamlining, and energy infrastructure expansion.

Critics, including Talarico’s allies, highlight past Republican support for data center expansion via tax incentives. The political discourse now focuses on accountability for growth and community protection.

The Upcoming Battle

Texas is pivotal for the midterm elections, with Talarico polling ahead of Paxton in various surveys. While Texas has not elected a Democrat statewide since 1994, Talarico has gained momentum, and Paxton won a contentious primary against Republican Senator John Cornyn.

The state remains a focal point for Democrats aiming to gain a Senate majority. Cook Political Report and Fox News have classified Texas as a “tossup,” while The Sabato Crystal Ball ranks it as “leans Republican.” Former President Trump has consistently won the state.