James Talarico Proposes Strict Texas Data Center Regulations

Democratic U.S. Senate nominee James Talarico unveiled a plan in Austin to implement tighter regulations on data center development across Texas. The proposal includes repealing the state's data center sales tax exemption, mandating the use of closed-loop water systems, and granting local communities the authority to approve or reject new developments.

Talarico argues that the state provides "sweetheart tax deals" to AI companies, which increases utility bills for residents and results in significant lost tax revenue. His platform aligns with other Democratic candidates, including Gina Hinojosa, Vikki Goodwin, Sarah Eckhardt, and Clayton Tucker, who have pushed back against rapid industry growth. Some of these candidates have called for a total moratorium on new construction.

The movement for regulation follows polling indicating a majority of Texans oppose data center construction in their communities. Governor Greg Abbott, who previously championed the industry, has recently shifted his position by proposing his own regulatory scheme and a ban on development within rural neighborhoods.