- James Talarico called for a broad set of tighter regulations on data centers in Texas, highlighting the need for local communities to have a say in development projects.
- Talarico's proposals include ending tax exemptions for data centers, protecting the grid, and granting local communities authority over development.
- Sid Miller expressed support for Talarico's push, stating that this is not a partisan issue but one that affects all Texans.
- Data centers have been criticized for increasing utility bills across Texas, with Talarico stating that they are being subsidized by tax breaks that burden local residents.
- The state of Texas is projected to lose $3.2 billion in tax revenue over the next two years due to a sales tax exemption for data centers.
- Local officials have requested the state to regulate data center development in their communities due to a lack of oversight.
Texas Democratic Senate nominee James Talarico has called for comprehensive regulations on data centers, addressing concerns over rising utility costs and environmental impacts. He argues that current practices favor large tech companies at the expense of local communities.14
“Data centers are jacking up utility bills across the state of Texas,” Talarico stated, criticizing tax breaks that benefit major AI firms while burdening residents. His proposals include:
- Setting minimum federal requirements for data center development to protect the grid and environment.
- Ending tax exemptions for large tech companies.2
- Requiring data centers to use closed-loop water systems.
- Granting local communities authority over data center projects.
Talarico emphasized the need for transparency, noting that Texas is projected to lose $3.2 billion in tax revenue over two years due to existing exemptions. He stated, “Billionaire-backed politicians are giving sweetheart tax deals to giant AI companies and then sticking us with the bill.”5
Agriculture Commissioner Sid Miller supports Talarico's initiative, asserting, “This is not a Republican or Democrat issue. This is an issue for Texas and what's best for Texas.” He highlighted the lack of oversight in data center development, stating, “The counties don't... have ordinance-making authority.” Miller called for a moratorium on new projects until regulations are established, emphasizing the need for responsible economic development that prioritizes affordability and reliability for Texans.3
Talarico's plan aims to balance innovation with community interests, ensuring that local voices are heard in the face of rapid technological growth.
“Talarico proposed ending the state's data center sales tax exemption and giving local communities authority to approve projects, as the Texas Tribune estimates the state will lose $3.2 billion in tax revenue over two years from the current exemption. Miller, a Republican, said the state has no oversight and called for a moratorium or special session to address grid and water concerns.”
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