The data center industry has donated thousands to Texas Attorney General Ken Paxton’s Senate campaign as Hood County waits for a ruling from his office on a its authority to impose a moratorium.
Paxton's political operation received at least $448,000 as of June from executives and political committees of data center companies to his according to reporting from the Washington-based digital news outlet NOTUS, which covers government and politics.
Hood County asked the Attorney General for a ruling in February on its authority to pause the development of data centers after resident pushback. The ruling is still pending according to the Attorney General’s website.
Paxton’s campaign told KERA he will be releasing a policy plan on data centers soon.
“AG Paxton’s standard hasn’t changed,” said Madison Cercy, a spokesperson for the campaign. “He is laser-focused on protecting Texas families, Texas water and the Texas grid.”
James Talarico, Paxton’s Democratic opponent in the U.S. Senate race, called for regulating data centers at a rally in Arlington last week.
“If data center companies can’t meet our demands, they shouldn’t be built in our communities,” Talarico said.
He also proposed establishing an AI dividend, giving Americans a portion of the profits from data centers.
NOTUS reported that pro-Talarico super PAC Lone Star Rising received a $10 million donation from Reid Hoffman, the cofounder of LinkedIn who has spoken in favor of data centers.
Federal law prohibits political campaigns from coordinating with outside entities, including super PACs.
Talarico has also been outspoken against super PACs, calling for a ban.
Hood County has dealt with months-long tension over proposed data centers, with residents raising concerns about water consumption, wastewater treatment, traffic, property values, noise and potential impacts to the county's rural character. The county approved the concept plan for the Comanche Circle data center development in June.
In nearby Somervell County, commissioners unanimously approved a resolution in May opposing new data centers and a letter calling on lawmakers to increase regulation. Gov. Greg Abbott issued a directive last week announcing that no new data centers could connect to the Texas power grid until state regulators conducted a thorough review of their energy and water usage, as well as their impact on nearby communities.
Paxton’s campaign donations from the data center industry aren’t surprising, said Brian Crawford, whose property is near the Comanche Circle project that was recently approved in Hood County.
“I assume that that goes hand-in-hand with that lack of response or really any response relative to data centers,” Crawford said.
Black Mountain Energy Storage, whose vice president of land donated $17,000 to PACs associated with Paxton’s campaign in May according to FEC filings, is building another data center in Fort Worth near Crawford’s home.
Paxton told Valuetainment, a business podcast, in May the issue of AI data centers is complicated. He said the U.S. needs to outpace China in AI, but he understands why there’s pushback.
“I have a lot of sensitivity for local communities that don’t want things built next to their neighborhoods,” Paxton said. “I think there needs to be some balance.”
He said the decision should be made by local officials with input from state leaders if needed.
Got a tip? Email Caroline Love at clove@kera.org.
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