During a CNN town hall, Democratic U.S. Senate candidate James Talarico intensified his criticism of the expanding data center industry in Texas. He argued that companies should handle the costs of their projects, not communities. This stance is a key part of his campaign to become the first Democrat elected to the Senate from Texas since 1988. Polls indicate a close race in this traditionally Republican state.
Talarico has linked his Republican opponent, Texas Attorney General Ken Paxton, to data center developments. He claims Texans may face higher utility bills while developers gain benefits. Texas is a leader in data center projects, with nearly 700 facilities, according to Cleanview’s tracking data.
At the town hall, Talarico mentioned a trip to Abilene where new data centers are planned, engaging with both Democrat and Republican residents. He presented a plan to charge these companies for their energy and enforce water recycling to address local water issues. Talarico emphasized community consent prior to data center construction.
Paxton has continued to support data center development in Texas, advocating for necessary safeguards to protect residents’ resources. Newsweek reached out to both campaigns for comments.
Data centers have become a focal point for voters as the November midterm elections draw near, particularly in the contentious Senate race which could influence Senate control. Concerns about energy consumption, environmental impact, and location have sparked opposition.
James Talarico’s Proposals
In July, Talarico called for stricter data center regulations in Texas. He announced plans for federal standards and suggested repealing Texas’ sales tax exemption for these centers. Moreover, he wants large energy users to cover their infrastructure costs.
Talarico stated, “We need to ensure AI works for working people by ending sweetheart tax deals to data centers, empowering local residents to weigh in on data center construction in their communities, holding data centers accountable for polluting our water, and making AI companies pay for their own electric and water infrastructure.”
This week, Talarico launched an ad attacking Paxton’s connections to the industry, highlighting tax breaks given to data centers.
Ken Paxton’s Perspective
Paxton supports data center growth, citing available land in Texas for construction away from neighborhoods. In a recent interview, he cited job creation, economic support, and global competitiveness as benefits of these facilities.
He advocates for measures to prevent data centers from straining the electricity grid or increasing costs for residents. His plan includes ensuring data centers recycle water to avoid exacerbating local issues.
Paxton’s four-point plan addresses technology concerns and aims to protect Texans by imposing requirements on data centers. The plan includes Texas Governor Greg Abbott’s proposals to limit data center locations and remove sales tax exemptions.
Paxton emphasized, “My plan will ensure that data centers are not utilized to power AI platforms that endanger our children.”
Impact on the Senate Race
Political science expert Brandon Rottinghaus noted that Talarico might attract Republican-leaning voters on this matter, especially those in rural and suburban areas.
“Rural conservatives worried about water resources, suburban homeowners concerned about electricity bills, and Democrats skeptical of corporate influence can all find common ground on this issue,” Rottinghaus said.
Cal Jillson from Southern Methodist University stated that both Talarico and Paxton share concerns about data centers, though Talarico is more assertive. Both agree on minimizing data centers’ impact on utilities and neighborhoods.
Jillson predicted policies would eventually support data centers with reasonable regulatory restrictions, noting Texas’s favorable conditions for such developments.
Republican strategists have pointed out that candidates are re-evaluating their support for data centers amid local opposition.
Polling Data
Recent polls suggest a tight contest in Texas, with Talarico holding a slight lead over Paxton. The RealClearPolitics average gives Talarico a 2.6-point advantage. A Marist poll reported Talarico leading 47% to 45% among likely voters.
A ReconMR/Siena Research Institute poll showed similar figures, while a Trafalgar Group poll backed these findings. Discussions with Newsweek editors Matthew Robinson and Shakeema Edwards have supplemented this coverage.
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