Trump-backed Ken Paxton unveils ‘Texas first’ datacenter plan aimed at ‘negative impact’

Ken Paxton, a Republican candidate for the US Senate in Texas, has unveiled plans to tackle the “negative impact” of datacenters amid a growing backlash across the political spectrum.

Paxton, endorsed by Donald Trump but facing a close contest against Democrat James Talarico, posted a “Texas first” datacenter plan on X with a graphic that the social media network flagged as “Made with AI”.

Republicans have been struggling to keep up with a shift in public opinion fuelled by concerns that power and water-hungry datacenters will push up energy costs and harm the environment. Some fear the issue could prove costly in November’s US midterm elections.

An Annenberg Public Policy Center survey last month found that 61% of Americans now oppose the building of a new datacenter in their area, an increase from 49% in March. This includes 69% of Democrats, 54% of Republicans and 53% of independents.

Last year Greg Abbott, the governor of Texas, dubbed his state the “epicenter of AI development”, but on Sunday he told ABC’s This Week programme 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”.

On Monday his ally Paxton, currently the state attorney general in Texas, outlined a four-point plan that includes banning Chinese technology to power US datacenters, holding companies criminally liable if AI chatbots undermine children’s safety and cutting red tape to ensure datacenters do not raise Texans’ electricity bills.

He also pledged to support Abbott’s state plan to ban new datacenters from rural neighbourhoods, repeal sales tax exemptions and ensure they are adding to Texas’s electricity capacity rather than taking from it.

Paxton said in a statement: “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.

“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 Al platforms that endanger our children.”

The move signals an effort by Paxton, a rightwing populist who defeated incumbent US senator John Cornyn in a Republican primary runoff, to blunt attacks on what could be a potential electoral issue. His rival Talarico has urged tighter regulations on datacenter development and an end to sweetheart tax deals for big tech companies.

Talarico accused Paxton of trying to erase his history giving data center tax handouts. He said in 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.

“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 what is traditionally a Republican stronghold. A Fox News poll in late July showed Talarico leading 51% to 48%. The Cook Political Report describes the election as a toss-up.

Paxton is struggling to overcome a series of political scandals. He was impeached in 2023 after being accused of corruption and later acquitted in a trial in the Texas senate. He was also indicted on charges of felony securities fraud but 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.

Politicians are scrambling to adjust to the backlash against AI datacenters, which consume huge quantities of electricity and water, threaten to alter the landscape of local communities and create relatively few jobs.

Josh Shapiro, the Democratic governor of Pennsylvania, last year championed a $20bn investment by Amazon but last week signed an executive order he said imposes the “strictest guardrails in the nation”. Bernie Sanders, an independent senator for Vermont, has urged big tech leaders to pause AI development.

The Axios website reported that the National Republican Senatorial Committee warned leading AI companies that voter discontent with the centers is endangering the party’s chances of defending a Senate seat in Ohio.

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.”