Plan proposes Chinese-tech ban, child-safety liability, rural siting
Ken Paxton, the Trump-backed Republican running for U.S. Senate in Texas, posted a four-point “Texas first” datacenter plan on X on Monday, rolling out policy proposals aimed at the fast-growing AI infrastructure sector as polling shows his race against Democrat James Talarico tightening. The graphic accompanying the post was flagged by the social media platform as “Made with AI.”
The rollout comes as Paxton faces scrutiny over his past ties to datacenter developers and as voters across party lines express rising concern about the energy and water demands of new AI facilities. An Annenberg Public Policy Center survey released last month found that 61% of Americans now oppose the building of a new datacenter in their area, up from 49% in March. Opposition includes 69% of Democrats, 54% of Republicans and 53% of independents.
The plan contains four main elements. It would ban Chinese technology from powering U.S. datacenters. It would hold companies criminally liable if AI chatbots undermine children’s safety. It would cut red tape to ensure datacenters do not raise Texans’ electricity bills. And Paxton pledged to support Gov. Greg Abbott’s state-level effort to bar new datacenters from rural neighborhoods, repeal sales tax exemptions for the industry, and require that datacenters add to Texas’s electricity capacity rather than draw from it.
“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. “This plan will ensure that happens while putting Texas first, protecting our culture and land, and safeguarding our families and communities. My plan will also work to ensure that data centers are not utilized to power AI platforms that endanger our children.”
Paxton’s Democratic opponent James Talarico responded with a statement. “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. “Now he’s scared his ties to big data center companies will lose him the election, so he’s making a sad attempt to reverse course by releasing a plan he literally used AI to make.”
The race is tight in a state Republicans have dominated for decades. A Fox News poll in late July showed Talarico leading 51% to 48%, and the Cook Political Report rates the general election a toss-up.
Abbott, a Paxton ally, told ABC’s This Week on Sunday that tech companies “basically dug their own grave for the problem that’s been caused for them and that’s why they got the backlash they deserve.” Last year, Abbott had dubbed Texas the “epicenter of AI development.”
Other elected officials have moved to tighten datacenter rules as the political mood shifts. Pennsylvania Gov. Josh Shapiro, a Democrat, last year championed a $20 billion Amazon investment but last week signed an executive order he said imposes the “strictest guardrails in the nation.” Independent Sen. Bernie Sanders of Vermont has urged big tech leaders to pause AI development. Axios reported that the National Republican Senatorial Committee warned leading AI companies that voter discontent with datacenters is endangering the party’s chances of defending a Senate seat in Ohio.
Donald Trump, however, remains supportive of the industry. He told Punchbowl News recently: “I saw Texas the other day sort of is against datacenters. I think it’s a mistake. And I’m not taking positions, I just think it’s a mistake, because there are other communities that want it. When a community wants it, it means a lot of money is going to come into that community.”
Paxton, who currently serves as Texas attorney general, defeated incumbent Sen. John Cornyn in a GOP primary runoff earlier this year. He was impeached in 2023 after being accused of corruption and later acquitted by the Texas Senate. He was indicted on felony securities fraud charges, though the case was dismissed after a 2024 pre-trial diversion agreement. Last year, his wife of 38 years, Angela Paxton, filed for divorce on “biblical grounds,” citing adultery.