Ken Paxton Supports Conditional Texas Data Center Expansion

Texas Attorney General and U.S. Senate candidate Ken Paxton announced his support for continued data center development in Texas, framing his position as a "yes, with conditions." Speaking with the U.S. Hispanic Business Council, Paxton argued that expanding these facilities is essential for the United States to compete with China in artificial intelligence.

To address bipartisan concerns regarding water and power consumption, Paxton suggested utilizing "open space" to keep facilities away from residential neighborhoods. His stance aligns with Governor Greg Abbott's recent moratorium on new data centers and includes a proposal to repeal industry sales tax exemptions. The Texas Comptroller’s Office estimates these exemptions will cost the state $3.2 billion over two years.

Paxton also launched an investigation into data centers that failed to report water usage to the Texas Water Development Board. His approach contrasts with Democratic Senate candidate James Talarico, who advocates for mandatory water recycling and requires developers to obtain local community approval.