Texas Attorney General Ken Paxton (R) announced a four-point plan on Tuesday to regulate data centers and artificial intelligence infrastructure. Paxton, who is running for a seat in the U.S. Senate, stated he would support both state and federal measures to manage the growth of these facilities, citing concerns over electricity costs and international competition.
The proposal follows similar positions taken by other Republican candidates regarding the expansion of data centers. These facilities house the large-scale computer systems and hardware required to power internet services and artificial intelligence.
Under the plan, Paxton committed to supporting Texas Governor Greg Abbott’s (R) state-level data center policies. At the federal level, Paxton said he would co-sponsor the Decentralized Access to Technology Alternatives Act. This bill, authored by Sen. Tom Cotton (R-Ark.), aims to exempt off-grid electricity providers from specific federal regulations. Additionally, Paxton proposed legislation to prohibit the use of Chinese technology in powering American data centers.
The proposal also addresses the international supply chain for technology. By advocating for a ban on Chinese-made components in data center infrastructure, the plan would directly impact tech companies and contractors who currently rely on global suppliers. Paxton stated this move is intended to ensure the United States maintains a competitive edge over China in the development of artificial intelligence. The scale of this impact—measured in the number of facilities or the specific volume of technology that would need to be replaced or avoided—was not detailed in the source.
If Paxton is elected and the proposed legislation is introduced and passed, the day-to-day change for the technology industry would involve a shift in hardware sourcing and a change in how power is procured for new facilities. The exact timeline for these changes depends on the outcome of the U.S. Senate race and subsequent legislative sessions in Congress. The next steps involve the progression of the Senate campaign and any future votes on the Decentralized Access to Technology Alternatives Act in the federal legislature.
