Artificial intelligence is quickly becoming one of the biggest political issues in Texas, with leaders from both parties calling for new safeguards as concerns grow over AI security, massive data centers and their impact on the state's electric grid.
The issue gained fresh attention after OpenAI disclosed that one of its AI models allegedly gained access to another AI company's systems during a security evaluation. The incident has renewed debate over how quickly AI technology is advancing and whether lawmakers are keeping pace.
The conversation is also shifting beyond the technology itself. Across Texas, elected officials are increasingly focused on the enormous data centers needed to power AI, warning they could place new demands on electricity, water and other infrastructure if left unchecked.
Democratic U.S. Senate candidate James Talarico said Texas should embrace innovation without overlooking its consequences.
"I think we have to strike a balance between being a leader in technology and innovation as our state has always been and protecting working people from the harms of these data centers," Talarico said Wednesday.
Republican Attorney General Ken Paxton, who is also running for the U.S. Senate, struck a similar tone while emphasizing the importance of keeping Texas competitive.
"I want technological innovation. I want companies to be successful. I want them to come to Texas and provide jobs and create wealth opportunities for the entire state," Paxton said on the podcast It's A Numbers Game with Ryan Girdusky. "We have to compete against China; we have to go forward with AI, but we do need to make sure that people are protected from the downsides as best we can do that."
The growing debate comes as Texas regulators prepare for an expected surge in electricity demand from AI-related development.
The Public Utility Commission of Texas recently sent Gov. Greg Abbott a memorandum outlining steps it is taking to keep electricity affordable while preparing for hundreds of proposed data centers seeking to connect to the state's power grid.
Under current policy, new large-load customers such as data centers are required to provide their own power generation, and the commission is working to ensure those companies pay the upfront costs of connecting to the grid rather than shifting those expenses onto consumers.
The commission is also asking lawmakers to clarify its authority over data centers and to add them to the Lone Star Infrastructure Protection Act, which is intended to protect critical Texas infrastructure from foreign adversaries.
State Sen. Charles Perry, R-Lubbock, believes lawmakers will spend significant time on the issue during the next legislative session.
"There'll probably be 181 members that will file 181 best practices bills for data centers," Perry said. "The PUC has over 200 data center applications, the bulk of them will never see the light of day."
At the same time, Democratic gubernatorial candidate Gina Hinojosa is pushing for a temporary halt to new projects.
"I am calling on Greg Abbott to issue a moratorium on any new data centers with an emergency executive order," Hinojosa said Wednesday.
Hinojosa said the pause should remain in place until lawmakers establish statewide standards that require greater transparency, local input, licensed labor and stronger protections for water supplies and the electric grid. She said many of the concerns are coming from rural communities where large projects have been proposed.
Abbott has also begun taking a more cautious approach to AI infrastructure.
After previously encouraging data center development, the governor recently proposed banning new AI data centers in rural neighborhoods while continuing to support the industry's expansion in other parts of Texas under stricter rules. He has also proposed reducing certain tax incentives while requiring data centers to pay for their own infrastructure, generate their own electricity, reuse water whenever possible and help lower electricity costs for Texans.
While Democrats and Republicans remain divided on many issues, the rapid growth of AI has created an unusual area of agreement. State leaders continue to welcome the jobs and investment the industry promises, but there is growing consensus that Texas needs clear rules to ensure that innovation does not come at the expense of reliable power, limited water resources or the communities expected to host the next generation of AI infrastructure.
