Ken Paxton Receives Data Center Funds Amid Texas Regulatory Clash

Texas Attorney General and U.S. Senate candidate Ken Paxton received at least $448,000 in campaign contributions from data center executives and political committees as of June. These donations arrive as Paxton's office considers a pending ruling on whether Hood County has the authority to impose a moratorium on data center development. Local residents have raised concerns regarding noise, rural character, and water usage.

The industry faces increasing scrutiny across the state. Governor Greg Abbott recently directed that no new data centers connect to the Texas power grid until state regulators complete a review of their energy and water impacts. In Somervell County, commissioners passed a resolution opposing new facilities and calling for tighter regulation.

Democratic Senate candidate James Talarico has pushed for stricter industry oversight and the creation of an AI dividend. While Talarico advocates for these regulations, a super PAC supporting his campaign received a $10 million donation from LinkedIn cofounder Reid Hoffman. The political tension coincides with active development in the sector, including a project by Black Mountain Energy Storage in Fort Worth, whose executive contributed $17,000 to PACs associated with Paxton.