Texas Republicans Reassess Data Center Development Amid AI Growth Concerns

Texas Republican Senate candidate and Attorney General Ken Paxton has proposed a four-point plan to regulate data center development in response to growing concerns about artificial intelligence (AI) ahead of the November elections. The plan includes legislation to prohibit Chinese technology in data centers, hold data centers liable for undermining children's safety, and support state-level regulations such as banning data center development in rural areas and requiring centers to fund their own energy needs. Paxton's Democratic opponent, James Talarico, has criticized him for previously supporting tax exemptions for data centers while also proposing measures to protect the state's electric grid and environment. Governor Greg Abbott, who once promoted Texas as a hub for AI development, has recently expressed concerns about the industry's rapid growth and issued a temporary ban on new data centers to audit their connection to the state's power grid. Meanwhile, the Strategic Petroleum Reserve has fallen to its lowest level since 1982, with recent releases totaling 3.7 million barrels, as part of a strategy to support global oil markets amid supply disruptions. The Trump administration's plan to release 172 million barrels could further deplete the reserve, which currently holds 289.7 million barrels. Energy Secretary Chris Wright has indicated that replenishing the reserve will be a costly endeavor, with estimates suggesting it could take up to $18 billion to refill it to its maximum capacity.