Senate candidate James Talarico used a CNN town hall on Wednesday night to sharpen his attacks on the rapidly expanding data center industry in Texas, arguing that companies rather than communities should bear the costs associated with the projects. The state lawmaker's comments reflect a broader message that has become central to his campaign to become the first Democrat elected to the Senate from Texas since 1988, as polls show a competitive race in the reliably red state. Talarico has repeatedly sought to tie his Republican opponent, Texas Attorney General Ken Paxton, to the data center development in the Lone Star State, arguing that Texans risk paying higher electricity and water costs while developers benefit.
Texas and Virginia have led the nation's data center development push, with almost 700 operating and planned facilities in Texas, according to the data center tracker Cleanview. "I was actually up in Abilene meeting with residents, Democrats and Republicans alike, because they are building three giant data centers," Talarico said at the town hall after an undecided voter expressed concerns about the rapid pace of data center development in the state. "I've rolled out a plan to crack down on these giant data center companies.
I've said that we got to force them to pay for their own energy instead of jacking up our utility bills," he continued. "We've got to force them to recycle their water so they are not exacerbating the water crisis here in Texas, and force them to get the consent of the people who live in these communities before they start building." Paxton has backed the continued development of data centers in Texas despite growing opposition, though he has argued that safeguards are needed to protect residents' water supplies and electricity costs. Newsweek has contacted the Talarico and Paxton campaigns for comment via email.
Data centers have become a major issue ahead of November's midterm elections, including in the closely watched Senate race in Texas that could help determine control of the chamber. The projects have drawn opposition from communities in Texas and other states over their electricity and water consumption, environmental effects and proximity to residential areas. In July, Talarico called for tighter regulations on data centers in Texas.
At a news conference, he unveiled proposals, including setting minimum federal standards for new data centers, repealing Texas' sales tax exemption for data centers and requiring large energy users to pay for their own infrastructure and grid needs. "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," Talarico said in a statement provided to Newsweek at the time. Earlier this week, Talarico launched a new television ad attacking Paxton over his ties to the data center industry.
"Ken Paxton is selling off Texas: our land, our water, our communities—anything to make a buck," he said in the ad. "He gave data centers billions in special tax breaks, and they gave him nearly half a million in campaign contributions." Paxton has embraced data center development, saying there is "plenty of open space in Texas" for data centers to be built away from residential areas. In an interview with the U.S.
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