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Texas lawmakers consider regulations for data centers
Texas communities continue pushing back against data center growth in their backyards, while state lawmakers debate how to properly regulate the expanding industry.
AUSTIN, Texas -Texas Attorney General and Republican candidate for U.S. Senate Ken Paxton has released his plan to address data center concerns in Texas, but Democrats have questioned his motives.
On Monday, Paxton said he has spent months listening to Texans’ concerns and national security experts to come up with his four-point plan:
- Author legislation to prohibit the use of Chinese technology to power American data centers or in infrastructure.
- Author legislation to hold data centers criminally liable if they use AI chatbots to undermine children’s safety.
- Co-sponser the DATA Act that has been sitting in committee in the U.S. Senate since January. It seeks to speed up energy projects by removing federal red tape and regulations.
- Support and advocate for Texas Gov. Greg Abbott’s initiatives to address data centers in the state, including repealing sales tax exemptions.
“This plan will ensure that happens while putting Texas first, protecting our culture and land, and safeguarding our families and communities,” Paxton’s statement said in part. “My plan will also work to ensure that data centers are not utilized to power AI platforms that endanger our children.”
Construction workers wire electricity lines in Dallas TX4 data center’s mechanical galley under construction at the NTT Data center campus in Garland, Texas, March 4, 2026. (Tom Fox/The Dallas Morning News
Democrats say Paxton seeks to ‘erase’ his history
Texas Democrats said the sales tax exemption that Paxton seeks to repeal is the same one he voted for in 2013 while in the State Senate.
“Ken Paxton voted to flood Texas with data centers by giving them billions in tax breaks with no regulations, and now he is trying to erase history,” said Texas Democratic Part Spokesperson Ryan Martin in a statement. “Paxton had the authority as Attorney General to stop data centers, but did nothing because he is in the pocket of his data center donors.”
Paxton’s opponent, Democratic Texas State Rep. James Talarico, called the attorney general’s plan “a sad attempt to reverse course.”
“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,” Talarico’s statement read in part.
Paxton also called into question Talarico’s campaign for accepting money from “data center-affiliated donors.”
Willie Nelson slams ‘water thieving’ data centers in Texas
Willie Nelson is urging residents to oppose an AI data center planned near his hometown of Abbott, Texas.
Data centers become issue in 2026 election
As data centers pop up across Texas, the issue has become a central issue for politicians in the state.
A June poll by the Texas Politics Project found that 56% of voters opposed construction of data centers in their community, while 29% said they supported it. The strongest opposition was in rural and suburban areas of the state.
Headwinds on data centers became so strong that Abbott reversed his stance. After calling Texas the “epicenter of AI development” in November, the governor ordered a pause on such projects in the state and rolled out a list of changes to regulations.
When can I vote?
Early voting for the 2026 midterms begins Oct. 19 in Texas. Election Day is Nov. 3. Check our Texas Election Guide for more information.
The Texas Democratic Party and previous FOX Local reporting
Election2026 ElectionsPoliticsTexas PoliticsTechnologyKen PaxtonNewsTexas
