Texas Attorney General Ken Paxton rolled out a new plan Monday aimed at regulating data centers and artificial intelligence, putting an increasingly contentious Texas issue at the center of his campaign for U.S. Senate.
Paxton, the Republican nominee for Senate, proposed federal action ranging from restrictions on Chinese technology in American data centers to criminal liability for companies whose facilities power AI chatbots that harm children.
The proposal quickly became another point of contention between Paxton and state Rep. James Talarico (D-Austin), the Democratic Senate nominee, as the two campaigns traded accusations over their respective financial ties to the data center industry.
In a press release Monday, Paxton pledged to author two bills dealing with data centers if elected to the Senate.
The first would prohibit “the usage of Chinese technology to power American data centers or [be] used in infrastructure,” according to his campaign.
Paxton said a second bill would hold “data center companies criminally liable if the center empowers AI chatbots that undermine children's safety.”
His proposal also calls for supporting legislation already introduced in Congress. Paxton said he would co-sponsor U.S. Sen. Tom Cotton’s (R-AR) Decentralized Access to Technology Alternatives (DATA) Act, which Paxton's campaign said would “aggressively eliminate outdated red tape and federal regulations and create new power systems that ensure data centers do not raise electricity costs for Texans.”
Paxton also pledged to “fiercely advocate for Governor Greg Abbott’s state-level plan.”
Asked for additional comment, Paxton’s campaign referred back to its press release.
“Texans deserve a fighter to lead and represent them as we address the growing presence of data centers in Texas and stop their negative impact on our neighborhoods,” the release said in part.
Paxton and Talarico trade accusations
Talarico responded with his own statement attacking Paxton’s record and campaign contributions.
“Ken Paxton has taken nearly half a million dollars from the data center industry, voted to flood Texas with data centers by giving them billions in tax handouts, and has refused to use his power as attorney general to respond to Texans’ requests to block data center development in their communities,” Talarico said.
A source affiliated with Talarico’s campaign pointed to reporting from NOTUS that found Paxton had received “at least $448,000” in campaign contributions “from executives and political committees of companies building, operating and investing in data centers.”
Paxton’s campaign countered by accusing Talarico of benefiting from “millions of dollars from data center-affiliated donors.”
According to Fox News, Lone Star Rising PAC, a group affiliated with Talarico’s campaign, received approximately $10 million from LinkedIn co-founder Reid Hoffman, who has supported data center development.
The competing attacks illustrate how quickly data centers have moved from a relatively obscure infrastructure issue to a political liability candidates in both parties are trying to address.
Data centers emerge as a 2026 campaign issue
The rapid expansion of data centers — driven in large part by growing demand for AI computing — has prompted concerns about electricity consumption, utility costs and the effects of large facilities on surrounding communities.
Those concerns are increasingly spilling into the 2026 midterm elections.
Axios reported last week that the Senate Republican campaign arm is worried voter opposition to data centers could threaten the party’s three-seat majority. Internal polling cited by Axios offered an especially stark assessment of public sentiment: “data centers are as popular as spent nuclear waste.”
