Ken Paxton unveils 4-point plan to curb data center growth in Texas

Mateo RosilesUSA TODAY NETWORK
Aug. 24, 2026, 6:22 p.m. ET

Texas Attorney General Ken Paxton has unveiled his plan to help combat the growing concerns and backlash over data centers in Texas, as Democrats are calling him out for flipping his stance

As part of his Republican campaign for the U.S. Senate, Paxton announced on Aug. 24 a proposal aimed at addressing a rare issue that unites both political parties in Texas, which he says came together months after he listened to Texans and national security experts.

“This plan will ensure that happens while putting Texas first, protecting our culture and land, and safeguarding our families and communities,” Paxton said in a statement. “My plan will also work to ensure that data centers are not utilized to power AI platforms that endanger our children.”

Called the Texas First Data Center Plan, which includes four points:

• Introduce legislation prohibiting the “use of Chinese technology to power American data centers” or be used in infrastructure.
• Introduce legislation that holds data center companies criminally liable if their facilities empower AI chatbots that undermine children’s safety.
• Co-sponsor the currently proposed DATA Act  — Senate Bill 3585 authored by U.S. Sen. Tom Cotton, R-Arkansas — that aims to eliminate outdated red tape and federal regulations and create new power systems that ensure data centers do not raise electricity costs for Texans. 
• Back Texas Gov. Greg Abbott’s data center plan at the state level, including: 
  • Prohibiting the building of AI data centers in rural Texas neighborhoods
  • Require best practices to reduce local impacts like setbacks, noise-reduction technology, light controls, traffic improvements and emergency coordination during high-stress grid scenarios
  • Repeal sales tax exemptions and other outdated incentives
  • Overhaul infrastructure priorities, including requiring data centers to fund their electricity and ensure they are adding to Texas’ electric capacity, not detracting from it, and mandate closed-loop water systems for cooling.

“Texans deserve a fighter to lead and represent them as we address the growing presence of data centers in Texas and stop their negative impact on our neighborhoods,” Paxton said in a statement. “While James Talarico and his campaign infrastructure accept millions of dollars from data center-affiliated donors and put their interests first, I will lead with Texans at the forefront.”

James Talarico, Democrats call Paxton out

Paxton’s data center announcement didn’t come without comment from his Democratic opponent in the Texas Senate race, state Rep. James Talarico.

“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 said in a statement.

As the Houston Chronicle reported on Aug. 24, two rural counties in Texas asked the attorney general’s office early this year if they could halt local data center construction. Paxton’s office still hasn’t weighed in.

The Democratic Senate candidate’s sentiments were also joined by Texas Democratic Party spokesperson Ryan Martin.

“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,” Martin said 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.”

Mateo Rosiles is the Texas Connect reporter for USA TODAY and its regional papers in Texas. Got a news tip for him? Email him at mrosiles@usatodayco.com.