Full Breakdown
Ken Paxton backs Texas data-center boom with “yes-with-conditions” stance
By Drooid · · How we work
Core Event – Conditional endorsement
Texas Attorney General Ken Paxton told the U.S. Hispanic Business Council that his position on new data-center projects is “a yes with conditions.” He argued that outright rejection would hurt the state’s competitiveness against China in artificial-intelligence development and that safeguards are needed to protect residents’ water supplies and electricity costs.
Background & Context
Data-center construction has accelerated across Texas, prompting concerns over high electricity demand, water-intensive cooling, noise, and land use. Governor Greg Abbott ordered a moratorium on new permits in September until audits of power usage are completed. A September Pew Research report found 54 % of Americans view data centers as mostly bad for the environment, 50 % see them as harmful to household energy bills, and 49 % believe they degrade nearby quality of life. Texas-state tax-exemption data show the exemption for data-center sales could cost the state $3.2 billion in revenue over the next two years.
Official Statements & Responses
Paxton unveiled a four-point “Texas First Data Center Plan” that aligns with Abbott’s restrictions, calls for developers to cover their own energy and water costs, and proposes off-grid power options such as “behind-the-meter” gas-fired plants. He also announced an investigation into hundreds of Texas data centers that have not reported water usage to the Texas Water Development Board.
Criticism & Opposition
Democratic state representative James Talarico opposes Paxton’s approach, urging the repeal of sales-tax exemptions, mandatory local-community approval, and closed-loop water-recycling systems. Talarico’s campaign accused Paxton of receiving donations from the data-center industry, while Paxton’s team highlighted a super-PAC that accepted money from data-center investors. A September 25 Texas Public Opinion Research poll placed Talarico ahead of Paxton 49 % to 44 %, with similar leads reported by Marist and Texas Southern University surveys.
Verbatim Quotes
- “This is a yes with conditions,” — Ken Paxton, Texas attorney General “This is a yes with conditions,” — General Ken Paxton, texas attorney
- “It can’t be a no, because we won’t survive that. China will have a huge advantage over us in artificial intelligence, and they will use that to dominate us.” — Ken Paxton, Texas attorney General “It can’t be a no, because we won’t survive that. China will have a huge advantage over us in artificial intelligence and they will use that to dominate us,” — General Ken Paxton, texas attorney
- “This plan will ensure that happens while putting Texas first, protecting our culture and land, and safeguarding our families and communities,” — Ken Paxton, Texas attorney General “This plan will ensure that happens while putting Texas first, protecting our culture and land, and safeguarding our families and communities,” — General Ken Paxton, texas attorney