Democratic U.S. Senate candidate James Talarico used a CNN town hall on Wednesday night to sharpen his attacks on the rapidly expanding data center industry in Texas, arguing that companies rather than communities should bear the costs associated with the projects.
The state lawmaker's comments reflect a broader message that has become central to his campaign to become the first Democrat elected to the Senate from Texas since 1988, as polls show a competitive race in the reliably red state.
Talarico has repeatedly sought to tie his Republican opponent, Texas Attorney General Ken Paxton, to the data center development in the Lone Star State, arguing that Texans risk paying higher electricity and water costs while developers benefit. Texas and Virginia have led the nation's data center development push, with almost 700 operating and planned facilities in Texas, according to the data center tracker Cleanview.
"I was actually up in Abilene meeting with residents, Democrats and Republicans alike, because they are building three giant data centers," Talarico said at the town hall after an undecided voter expressed concerns about the rapid pace of data center development in the state.
"I've rolled out a plan to crack down on these giant data center companies. I've said that we got to force them to pay for their own energy instead of jacking up our utility bills," he continued. "We've got to force them to recycle their water so they are not exacerbating the water crisis here in Texas, and force them to get the consent of the people who live in these communities before they start building."
Paxton has backed the continued development of data centers in Texas despite growing opposition, though he has argued that safeguards are needed to protect residents' water supplies and electricity costs.
Newsweek has contacted the Talarico and Paxton campaigns for comment via email.
Data centers have become a major issue ahead of November's midterm elections, including in the closely watched Senate race in Texas that could help determine control of the chamber. The projects have drawn opposition from communities in Texas and other states over their electricity and water consumption, environmental effects and proximity to residential areas.
...
What James Talarico Has Said About Data Centers
In July, Talarico called for tighter regulations on data centers in Texas.
At a news conference, he unveiled proposals, including setting minimum federal standards for new data centers, repealing Texas' sales tax exemption for data centers and requiring large energy users to pay for their own infrastructure and grid needs.
"We need to ensure AI works for working people by ending sweetheart tax deals to data centers, empowering local residents to weigh in on data center construction in their communities, holding data centers accountable for polluting our water, and making AI companies pay for their own electric and water infrastructure so that those costs aren't passed onto consumers," Talarico said in a statement provided to Newsweek at the time.
Earlier this week, Talarico launched a new television ad attacking Paxton over his ties to the data center industry.
"Ken Paxton is selling off Texas: our land, our water, our communities—anything to make a buck," he said in the ad. "He gave data centers billions in special tax breaks, and they gave him nearly half a million in campaign contributions."
What Ken Paxton Has Said About Data Centers
Paxton has embraced data center development, saying there is "plenty of open space in Texas" for data centers to be built away from residential areas.
In an interview with the U.S. Hispanic Business Council last month, he argued that the facilities could provide well-paid employment, support the economy and help the U.S. compete with China.
But he said he supported conditions that would prevent data centers from using the electric grid or raising rates for other customers, and that he would require them to recycle their own water so they do not worsen water problems in surrounding areas.
The Paxton campaign in August released a four-point plan to address concerns about data centers. It said Paxton would author legislation to stop technology made in China from being used in data centers and hold companies liable if data centers empower AI chatbots that undermine children's safety.
...
The plan also said Paxton would support Texas Governor Greg Abbott's proposal for data centers in the state, including prohibiting building data centers in rural Texas neighborhoods and repealing sales tax exemptions.
The plan "will put Texans first and protect our communities," Paxton said in a statement at the time.
"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," he said. "My plan will also work to ensure that data centers are not utilized to power AI platforms that endanger our children."
How Could Data Centers Affect Texas’ Senate Race?
Brandon Rottinghaus, a professor of political science at the University of Houston, said Talarico could appeal to Republican-leaning voters on the issue, particularly those in rural and suburban communities.
"Rural conservatives worried about water resources, suburban homeowners concerned about electricity bills, and Democrats skeptical of corporate influence can all find common ground on this issue," he told Newsweek.
"Talarico doesn't necessarily need these voters to become Democrats; he just needs enough Republican-leaning voters to reconsider their support for Paxton. In a competitive statewide race, even relatively small shifts among independents and leaning Republicans could matter," Rottinghaus said.
However, Talarico and Paxton are not that far apart on the issue, according to Cal Jillson, a professor of political science at Texas' Southern Methodist University.
"Though Paxton and Talarico express their reservations about data centers differently—Talarico presents as more vehement—their positions are not far apart," he said.
"Both call for assuring that data centers do not drive up electricity rates, consume scarce water resources, make too much noise, or be placed too near schools, businesses or homes," Jillson said.
He added that Paxton is "just a little more blunt about recognizing that Texas has been and remains a natural home for data centers, with its extensive open lands and business-friendly laws and regulations."
Once the elections are over, policy "will converge on encouraging data centers while setting reasonable regulatory restrictions on them," Jillson said. "Not everyone will be happy, but data centers are going to be built."
Republican strategists have previously told Newsweek that some candidates are fleeing from their initial stances on data centers given the levels of local opposition.
Mike Madrid, a Republican political consultant, said the shift in Abbott's stance shows that Republicans are "fleeing from early support of data centers."
"Frankly, any incumbent, Republican or Democrat, should be concerned about being tagged as pro-data center," political strategist Pete Seat told Newsweek. "The loudest voices are being heard, and policy is being made with those voices leading the charge."
...
James Talarico vs. Ken Paxton: Latest Polls
Recent polls have suggested that the Senate race in Texas remains highly competitive, with Talarico holding a narrow lead in several surveys.
The RealClearPolitics average of polls taken from September 18 to October 11 has him with a 2.6-point lead, at 48.1 percent to Paxton's 45.5 percent.
A Marist poll released on Wednesday found Talarico leading Paxton 47 percent to 45 percent among likely voters. Among registered voters, Talarico held a 4-point lead, which was down from 6 points a month earlier. The poll was conducted among 1,196 registered voters from October 8 to 11. The margin of error for likely voters was plus or minus 4.9 percentage points, and plus or minus 4.3 percentage points for registered voters.
A ReconMR/Siena Research Institute poll of 617 likely voters, conducted from October 5 to 8, put Talarico ahead—48 percent to 44 percent.
The poll from the Trafalgar Group, a Republican-leaning pollster, found Talarico ahead—47 percent to 44 percent—among 1,086 likely voters surveyed from October 6 to 8.
Contact Newsweek editors on this story: Matthew Robinson and Shakeema Edwards.