Ken Paxton Embraces Data Centers in Texas Despite Widespread Opposition - Newsweek
Texas Attorney General Ken Paxton has backed the continued development of data centers in Texas despite growing opposition to the facilities, though he reportedly argued that safeguards are needed to protect residents’ water supplies and electricity costs.
Data centers have become a political flashpoint across the U.S. ahead of November’s midterm elections, with the projects drawing opposition over their electricity and water consumption, environmental effects and proximity to residential areas.
Texas communities such as Hutto, Taylor, and areas around San Antonio have seen local opposition to proposed or expanding data centers. Residents have raised concerns about electricity demand, water consumption, noise, land use, and the pace of industrial development.
Newsweek reached out to Paxton's campaign via email on Tuesday morning outside business hours and is awaiting a response.
Paxton, the Republican nominee for U.S. Senate, said there is "plenty of open space in Texas" for data centers to be built. Paxton made the remarks on Monday in an interview with the U.S. Hispanic Business Council, according to the Houston Chronicle.
Speaking to the council’s president Javier Palomarez, Paxton argued that the facilities can provide well-paid employment, support the economy and help the U.S. compete with China, per the outlet.
"This is a yes with conditions," Paxton said, according to the Chronicle, which added that he called for conditions that would prevent data centers from using the electric grid or raising rates for other customers, and require them to recycle their own water so they do not worsen water problems in surrounding areas.
"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," Paxton said, also predicting that the industry would eventually become an "economic boom" for Texas and the wider country.
"I think it’s really important that we go forward, but look, do these things need to be built in a neighborhood?" he said, according to the Chronicle. "I think there can be some negotiation there about ‘let’s not put it right next to somebody’s house.’ There’s plenty of open space in Texas and in other parts of the country that we can put data centers."
Paxton’s comments come as Texas Governor Greg Abbott has sought to separate himself from the industry’s proliferation after previously championing AI investment.
In September, Abbott directed state regulators to halt data center permit approvals until audits of their electricity demands are completed. He said data centers must "pay their own way" and "protect our grid and water."
"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 so that those costs aren’t passed onto consumers," a statement previously sent to Newsweek by Talarico’s campaign team said.
In July, Talarico unveiled several proposals to crack down on the facilities, including releasing government records on tax breaks and mandating closed-loop water systems, according to reports.
Data centers are facilities housing computer servers and other equipment used to store, manage, process and transmit large quantities of data. They provide the computing infrastructure behind online services such as artificial intelligence systems. Their equipment requires substantial electricity, while some facilities also use significant amounts of water for cooling.
A September Pew Research report found that public attitudes to the facilities are becoming increasingly negative.
It found that 54 percent of Americans considered data centers mostly bad for the environment, up from 39 percent in January. Half believed they were mostly bad for household energy bills, while 49 percent viewed them as mostly bad for nearby residents’ quality of life.
The stance could add a complication for Paxton, who has trailed Democrat James Talarico in multiple recent surveys, according to aggregator 270toWin. A September 25 Texas Public Opinion Research poll put Talarico ahead 49 percent to 44 percent, while a Marist poll showed a 50-44 lead. A Texas Southern University survey placed Talarico more narrowly ahead, 47 percent to 46 percent.
Paxton recently announced an investigation into the water use of hundreds of Texas data centers.
Paxton also defended a plea deal Talarico had previously criticized him over involving a local lawyer accused of sexually abusing a boy for years. The agreement, reached by prosecutors in Paxton's office, ultimately allowed the lawyer to serve just one month in jail and sparked public outcry, as Newsweek previously reported.
The accused’s defense lawyer previously told Newsweek that Paxton "had nothing to do" with the outcome of the case.
"The criticism has been that I let a child predator out after one day. Well guess what? They served 60 days," said Paxton. "It wasn’t what we wanted, but we did not control that situation," he added.
