Democrat James Talarico (pictured left) and Republican Ken Paxton (pictured right) are in a Nov. 3 election for U.S. Senate in Texas.
Abigail Dollins
Fort Worth Star-Telegram
Data center policy has emerged as a hot-topic in elections across Texas, including in the closely-watched U.S. Senate race between Republican Ken Paxton and Democrat James Talarico.
Both candidates have announced data center plans while on the campaign trail. Election Day is Nov. 3 and early voting runs Oct. 19-30.
How would Paxton and Talarico address the industry’s growth and regulation while in Washington? We break it down.
Issue: Data Center policiesKen Paxton, Republican
Paxton proposes authoring legislation that bars the use of Chinese technology for powering American data centers. He would also draft legislation to “protect children by holding data center companies criminally liable if the center empowers AI chatbots that undermine children’s safety,” according to an Aug. 24 campaign news release.
The attorney general said he’d co-sponsor the DATA Act, which was introduced by Rep. Tom Cotton, an Arkansas Republican, in January. The legislation aims to “to accelerate American energy innovation while also lowering energy costs,” according to a news release from the congressman.
Paxton’s proposal includes supporting Texas Gov. Greg Abbott’s data center plan at the state level. That includes prohibiting the building of AI data centers in rural Texas neighborhoods, best practices for things like setbacks, noise reduction and the repeal of sales tax exemptions, per the news release from Paxton’s campaign.
During a Q&A with the United States Hispanic Business Council, Paxton expressed support for data centers generating their own power to keep electricity rates from going up and data centers recycling the water they use to avoid draining community resources with a closed-loop system.
He said “feasible restrictions” are needed to prevent harm to people while also creating jobs.
“This is not an extreme, ‘yes’ or ‘no,’” Paxton said. “This is a yes with conditions.”
James Talarico, Democrat
Talarico proposes ending “sweetheart tax deals for big tech companies,” and lowering Texans’ utility costs “by guaranteeing large energy users like data centers fund the infrastructure improvements they need,” according to a July 22 campaign news release.
Talarico also supports empowering communities to decide if they want a data center and creating “minimum federal requirements” for new projects to ensure transparency and to protect the electric grid, the environment and jobs.
He’s called for requiring closed loop systems, accountability for centers that pollute water and transparency around which data centers are getting tax breaks in Texas.
“If a data center company can’t meet the demands of the community where they seek to operate; if they can’t pay for their own energy; if they can’t pay for their own water and recycle their water; if they can’t get the consent and the input of the people who live in these communities, then they shouldn’t be built,” Talarico said in a Sept. 30 Q&A with the United States Hispanic Business Council. ”But if they can do those things, and it’s a two-way partnership between the community and the data center company, then we should honor local control.”
Talarico proposes an artificial intelligence dividend “so every American citizen owns a piece of” American AI companies.
Talarico’s campaign has criticized Paxton for receiving campaign donations from the data center industry.
Follow More of Our Reporting on Reality Check
Fort Worth Star-Telegram
Eleanor (Elly) Dearman is a Texas politics and government reporter for the Fort Worth Star-Telegram. She’s based in Austin, covering the Legislature and its impact on North Texas. She grew up in Denton and has been a reporter for more than six years.
Support my work with a digital subscription