Texas Republicans turn against data centers, putting big tech on notice
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At a glance
- Republican candidates in Texas and several other states are calling for tighter data-center restrictions, breaking with President Donald Trumpโs pro-AI position.
- Critics say data centers raise electricity and water costs, create pollution and fail to deliver enough jobs or tax revenue to justify public incentives.
- The backlash is forcing Republicans to balance support for AI investment against local opposition ahead of the November elections.
Texas Republicans are turning against data centers, putting a party once eager to claim the AI boom on a collision course with local voters and President Donald Trump.
epicenter of AI development
Less than a year after Governor Greg Abbott called Texas the โepicenter of AI development,โ he is seeking sweeping new restrictions as he campaigns for re-election. Abbott has called for repealing tax incentives for data-center construction and limiting development in rural communities. A state audit announced on August 3 has effectively paused approvals for new grid connections.
The shift extends beyond Texas. Republican candidates in at least five states, including Michigan, Wisconsin and Pennsylvania, have adopted tougher rhetoric or proposed restrictions. The issue pits the partyโs support for economic growth and competition with China against a populist backlash over affordability, Republican strategist Brad Dayspring said.
pitting pro-growth instincts and the push to beat China in the AI race against a populist backlash over affordability
Texas spent years remaking itself as a technology hub. Business-friendly regulations and abundant resources attracted companies such as SpaceX and Oracle, as well as entrepreneurs including Elon Musk. But opponents now say data centers drive up power and water bills, brighten the night sky and produce too few jobs or tax revenues to justify the incentives offered by states.
negative impact of data centers
An August Texas Politics Project poll found that only 30% of respondents would support a data center in their community. Technology companies are trying to respond, spending more than $300 million on the midterm elections and running a large advertising campaign about the facilitiesโ benefits. Republican Attorney General Ken Paxton has also proposed an AI plan that he says would preserve U.S. competitiveness while limiting data centersโ โnegative impact.โ Trump has criticized Americans who oppose the facilities, warning they could end up โbackwards and poor.โ Republican National Committee spokeswoman Natalie Baldassarre said candidates would be advised to do what best serves their communities.
backwards and poor
Originally published by Jerusalem Post. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.