Texas Attorney General Ken Paxton (R) announced a four-point policy proposal on Monday aimed at placing new restrictions on artificial intelligence data centers. Paxton, who is running for a U.S. Senate seat, said the plan is intended to protect the state's electrical grid and communities while competing with China in AI development.
The proposal follows similar actions taken by Texas Governor Greg Abbott (R), who in June directed state utilities to limit the economic impact of data centers on residents. Earlier in August, Abbott also implemented a moratorium on new data center approvals pending a state audit and called for the repeal of state-level data center incentives.
Under Paxton's federal plan, he would co-sponsor the DATA Act, a bill introduced by Sen. Tom Cotton (R-AR) that seeks to exempt off-grid electricity providers from certain federal regulations. Paxton stated this would prevent data centers from increasing consumer utility costs. The plan also includes legislation to ban Chinese technology in data centers and would establish criminal liability for developers if their infrastructure powers AI chatbots that affect children’s safety.
For utility customers and households, the co-sponsorship of the DATA Act is framed as a measure to prevent rising electricity bills as demand for high-capacity computing grows. While the source does not provide specific dollar amounts for potential savings or cost increases, the proposal seeks to decouple data center energy needs from the public grid through off-grid exemptions. Residents would notice these changes through potential shifts in their monthly energy costs and local land-use decisions regarding where these sprawling server facilities can be built.
The plan also sets a precedent for federal oversight of AI content by linking physical infrastructure to the output of software. By proposing criminal penalties for developers based on the actions of AI chatbots, the policy would introduce a new legal framework for the technology industry. Paxton is currently in a race for the U.S. Senate against Democratic nominee James Talarico, which the Cook Political Report has classified as a "toss-up." The specific dates for legislative introduction or potential votes were not reported.