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Texas datacenter plan unveiled
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Texas AG Ken Paxton unveiled a four-point plan to restrict data centers. The plan targets AI infrastructure costs and risks, sparking a Senate race clash.
Background
Texas has seen a rapid expansion of data centers, raising concerns about electricity costs, water usage, and environmental impact. Paxton's plan, announced during his U.S. Senate campaign, responds to growing bipartisan backlash and aims to address these issues while supporting AI development.
How it unfolded
- Jun 2026Gov. Greg Abbott announced new restrictions on data centers, including a moratorium on new approvals pending a state audit.
- Aug 21, 2026Paxton's plan was first reported by Fox News, detailing his four-point proposal.
- Aug 24, 2026Paxton officially unveiled the Texas First Data Center Plan, including federal legislation, support for independent power, repeal of sales-tax exemptions, and backing Abbott's standards.
- Aug 25, 2026Democratic opponent James Talarico criticized Paxton's motives, citing his past support for data center incentives and campaign contributions.
Who’s saying what
- Support
- Paxton says the plan will protect the grid, communities, and children while ensuring America beats China in the AI race.
- Caution
- Democrats like Talarico question Paxton's flip, noting he previously voted for tax exemptions and took money from the industry.
Still unverified
Paxton's plan includes holding companies criminally liable if AI chatbots undermine children's safety, but specifics are not detailed in the material.