Texas Attorney General Ken Paxton has backed the continued development of data centers in Texas despite growing opposition to the facilities, though he reportedly argued that safeguards are needed to protect residents’ water supplies and electricity costs. Data centers have become a political flashpoint across the U.S. ahead of November’s midterm elections, with the projects drawing opposition over their electricity and water consumption, environmental effects and proximity to residential areas. Texas communities such as Hutto, Taylor, and areas around San Antonio have seen local opposition to proposed or expanding data centers.
Residents have raised concerns about electricity demand, water consumption, noise, land use, and the pace of industrial development. Newsweek reached out to Paxton's campaign via email on Tuesday morning outside business hours and is awaiting a response. Paxton, the Republican nominee for U.S.
Senate, said there is "plenty of open space in Texas" for data centers to be built. Paxton made the remarks on Monday in an interview with the U.S. Hispanic Business Council, according to the Houston Chronicle.
Speaking to the council’s president Javier Palomarez, Paxton argued that the facilities can provide well-paid employment, support the economy and help the U.S. compete with China, per the outlet. "This is a yes with conditions," Paxton said, according to the Chronicle, which added that he called for conditions that would prevent data centers from using the electric grid or raising rates for other customers, and require them to recycle their own water so they do not worsen water problems in surrounding areas. "It can’t be a no, because we won’t survive that.
China will have a huge advantage over us in artificial intelligence and they will use that to dominate us," Paxton said, also predicting that the industry would eventually become an "economic boom" for Texas and the wider country. "I think it’s really important that we go forward, but look, do these things need to be built in a neighborhood?" he said, according to the Chronicle. "I think there can be some negotiation there about ‘let’s not put it right next to somebody’s house.’ There’s plenty of open space in Texas and in other parts of the country that we can put data centers." Paxton’s comments come as Texas Governor Greg Abbott has sought to separate himself from the industry’s proliferation after previously championing AI investment.
In September, Abbott directed state regulators to halt data center permit approvals until audits of their electricity demands are completed. He said data centers must "pay their own way" and "protect our grid and water." "We need to ensure AI works for working people by ending sweetheart tax deals to data centers, empowering local residents to weigh in on data center construction in their communities, holding data centers accountable for polluting our water, and making AI companies pay for their own electric and water infrastructure so that those costs aren’t passed onto consumers," a statement previously sent to Newsweek by Talarico’s campaign team said. In July, Talarico unveiled several proposals to crack down on the facilities, including releasing government records on tax breaks and mandating closed-loop water systems, according to reports.
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