Ken Paxton Unveils ‘Texas First’ Data Center Plan to Protect Grid, Communities

• August 25, 2026

The Sabey Data Center in Round Rock, Texas, on Aug. 11, 2025. (Aaron E. Martinez/The Austin American-Statesman via Getty Images)

Republican U.S. Senate candidate and Texas Attorney General Ken Paxton has released his plan to protect Texas’ power grid and communities from issues associated with data centers while ensuring the United States beats China in the artificial intelligence race.

On Monday, Paxton released his “Texas First Data Center Plan,” which outlines four key proposals to protect residents from the costly effects of data centers while allowing the businesses to operate.

The first part of the plan includes authoring legislation at the federal level to prohibit the use of Chinese technology to power American data centers or build up their infrastructure.

Texas already has a law that bans foreign adversaries, including China, from owning land. The law restricts the purchase or acquisition of real property by entities designated as adversarial nations. The list includes China, Russia, Iran, and North Korea.

Paxton’s plan also includes authoring legislation to protect children from AI chatbots by holding data center companies criminally liable if their facilities power chatbots that undermine children’s safety.

Another key aspect includes co-sponsoring the proposed DATA Act, introduced by Republican Sen. Tom Cotton of Arkansas. The act would allow data center companies and heavy manufacturers to build their own local power plants for their facilities, create a new category of “consumer-regulated electric utilities,” and allow those power systems to operate separately from the national power grid.

Lastly, Paxton’s plan includes supporting Gov. Greg Abbott’s plan to prohibit data centers from building in rural Texas neighborhoods and require best practices to reduce local impacts, including noise-reduction technology, light controls, and traffic improvements.

The plan also calls for repealing sales tax exemptions and other incentives for data centers and requiring them to fund their own electricity rather than draw power from Texas’ grid.

“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,” Paxton said in a press release. “While James Talarico and his campaign infrastructure accept millions of dollars from data center-affiliated donors and put their interests first, I will lead with Texans at the forefront. That’s exactly why I am proud to release my Texas First Data Center Plan that will put Texans first and protect our communities.”

“There’s no doubt in my mind that the United States will beat the Chinese Communist Party in the AI race. This plan will ensure that happens while putting Texas first, protecting our culture and land, and safeguarding our families and communities. My plan will also work to ensure data centers are not utilized to power AI platforms that endanger our children,” the attorney general added.

Emily Medeiros | Texas Correspondent

Emily Medeiros is the Texas Correspondent for the Daily Signal.

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