Paxton proposes restrictions on datacenters to address energy and water concerns
Texas attorney general and Senate candidate Ken Paxton unveiled a 'Texas first' plan to address datacenter impacts, including banning Chinese technology and holding companies liable for AI-related harms. The plan supports Governor Abbott's efforts to restrict new datacenters in rural areas and ensure they add to electricity capacity. Public opposition to datacenters has grown, with 61% of Americans now against local construction.
The Annenberg survey cited in the article shows opposition to datacenters has climbed sharply, from 49% in March to 61% by late July, with majorities across all party lines now resistant to local construction. Governor Abbott, who previously championed Texas as an AI hub, has since reversed course, telling ABC that tech companies brought the backlash upon themselves through their own actions.
Paxton's plan arrives amid a tight Senate race, with a Fox News poll showing his Democratic opponent James Talarico leading 51% to 48%. Talarico has accused Paxton of accepting roughly half a million dollars from the datacenter industry and supporting billions in tax exemptions before now shifting positions ahead of the election.
This story reflects a broader political realignment where technology infrastructure once welcomed as economic progress now faces bipartisan resistance over resource consumption. Communities nationwide could see datacenter development slow or halt as candidates across the spectrum adopt restrictive positions, potentially affecting AI industry growth, local tax revenues, and electricity grid stability. The outcome in Texas may signal how other states navigate competing pressures between technological advancement and environmental stewardship.