<p class="wp-block-paragraph">Texas Attorney General Ken Paxton is presenting himself as a centrist voice on data centers as he seeks to differentiate himself from his Democratic opponent in the Texas Senate race.</p>
<p class="wp-block-paragraph">In a conversation with the U.S. Hispanic Business Council on Monday, Paxton stated that his stance on data centers is “not an extreme yes/no” but rather a “yes, with conditions.”</p>
<p class="wp-block-paragraph">“Do these things need to be built in a neighborhood?” he asked. “I think there can be some negotiation there about, like, let’s not put it right next to somebody’s house. There’s plenty of open space in Texas, and other parts of the country, that we can put data centers that do not create a different atmosphere for a neighbor itself.”</p>
<p class="wp-block-paragraph">Paxton appears to align with Governor Greg Abbott (R-TX), who implemented a strict moratorium on the development of new data centers this summer due to concerns about the state’s strained water supplies and power grid.</p>
<p class="wp-block-paragraph">Following Abbott's action, Paxton unveiled his four-point Texas First Data Center Plan that supports the governor’s initiative to restrict the development of data centers driven by artificial intelligence.</p>
<p class="wp-block-paragraph">Paxton’s plan contrasts with the proposal from Texas Democrat James Talarico, who suggested that data center developers should obtain approval from local communities before beginning construction, cover their own energy costs, and recycle their water.</p>
<p class="wp-block-paragraph">The issue has become a focal point in the Senate race, with Talarico accusing Paxton of accepting donations from the data center industry. Talarico claimed he does not receive funds from data centers, while Paxton’s campaign criticized a pro-Talarico super PAC for accepting money from data center investors.</p>
<p class="wp-block-paragraph">While Paxton endorses certain restrictions on data centers, he acknowledges the economic benefits associated with constructing this rapidly growing technology infrastructure.</p>
<p class="wp-block-paragraph">Speaking at the USHBC event, Paxton described data centers as a “huge economic boon” that will create numerous jobs and assist Texas and the United States in competing with China in the AI sector.</p>
<p class="wp-block-paragraph">Paxton’s recent comments followed his announcement of an investigation into Texas-based data centers that have not reported their water usage to the Texas Water Development Board. This investigation aims to ensure that the state’s water supplies are not depleted by the more than 300 operational data centers.</p>