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TEXAS GOP RETHINKS AI BOOM AHEAD OF MIDTERMS
Republicans in the Lone Star State who once championed the data center expansion are now voicing skepticism about the pace of AI growth ahead of November elections. GOP Senate candidate and Texas attorney general Ken Paxton, who has been relatively quiet on the data center issue, released a four-point plan today to address Texans’ concerns on AI.What’s in the plan? Paxton’s plan would support legislation to prohibit Chinese technology in data centers and hold data centers liable if their technology undermines children’s safety. Paxton also joined as a cosponser on Republican Sen. Tom Cotton’s DATA Act, which would allow for large loads to build independent and off-grid power systems. As part of the plan, Paxton is also backing proposed state-level regulations, including banning data center development in rural areas, requiring best practices to limit local impacts, repealing sales tax exemptions, requiring centers to fund their own energy, and mandating closed-loop water systems. His Democratic opponent James Talarico has criticized Paxton as failing to act on data centers and for reportedly receiving thousands in campaign contributions from data center developers and operators. Talarico has also proposed data center requirements aimed at protecting the state’s electric grid and environment. From supporters to opponents: As a freshman senator in the Texas legislature in 2013, Paxton voted to support a 100% sales tax exemption for data centers. The tax exemptions passed nearly unanimously out of the state Senate, and have helped fuel the state’s data center growth. Despite his supporting vote, Paxton has been a fairly aggressive state litigator against Big Tech. He has brought lawsuits against Netflix, WhatsApp, Discord, and launched an investigation into Meta. “They basically dug their own grave”: Paxton’s pivot on data centers reflects the growing opposition to the industry in Texas, including from Gov. Gregg Abbott. Just last November, Abbott touted Texas as the “epicenter of AI development.” Now, however, the governor is blaming public backlash against data centers on the industry itself. Abbott said in an interview with ABC’s “This Week” yesterday that developers “had not been working in collaboration with the state, they’d not been in collaboration with local governments, and so they basically dug their own grave for the problem that’s been caused for them and that’s why they got the backlash they deserve.”Abbott earlier this month issued a temporary data center ban to allow for the state to complete an audit on all Al facilities wanting to connect to the grid. The governor said there’s more than 474 gigawatts’ worth of data centers that have requested to connect to the Texas grid. President Donald Trump, who has continuously supported efforts to speed up the data center development, said in an interview yesterday that it is a mistake for communities to oppose AI facilities, arguing that data centers will bring in jobs and money. SPR FALLS TO LOWEST LEVEL SINCE 1982
