State Rep. James Talarico, the Democrat running for the Texas’ contested U.S. Senate set, told reporters in San Antonio that he opposes a complete moratorium on new data center construction in Texas and instead wants common-sense regulations for the industry.
During the Thursday appearance, Talarico also emphasized that his approach differs from that of his opponent, Republican Texas Attorney General Ken Paxton, whom he accused of kowtowing to monied interests.
“I have a track record of working for working-class people,” the former San Antonio school teacher said. “Ken Paxton has a track record of selling out working-class people.”
Talarico’s comments on the hot-button issue of data centers came during a tour of the UA Local 142 Plumbers and Pipefitters training center on the East Side. During the visit, Talarico met with union members and received a hands-on welding lesson from an apprentice.
The Austin-area state rep told reporters that he wants to see Texas’ data center boom yield good-paying union jobs.
“If they’re not going to come and create good union jobs and support our communities, then they shouldn’t be in our communities,” he added.
Talarico’s proposals for regulating data centers include:
- Setting minimum federal requirements to protect the grid, environment, jobs and transparency for new data centers;
- Ending Texas’ sales tax exemption for data centers;
- Requiring large energy users to pay for their own infrastructure and grid interconnection costs;
- Requiring data centers to recycle water through closed-loop systems;
- Giving local communities authority over new data center projects;
- And releasing records showing tax breaks given to individual Texas data centers.
Talarico’s proposals stand in contrast to Democratic gubernatorial candidate Gina Hinojosa’s call for a total moratorium on data center construction until Gov. Greg Abbott either calls a special session on the matter or state lawmakers reconvene next year in Austin.
“People will die because they’re just trying to get warm bodies on these data centers,” Hinojosa said, arguing that allowing unlicensed electricians to work on construction of the massive computing centers puts workers and the community at risk.
Last week, Republican Agricultural Commissioner Sid Miller called out Abbott for not doing enough to regulate data centers, adding “there’s no weight behind what he’s saying.”
Even country music legend Willie Nelson this week came out against data centers, saying, “The last thing we need is a loud, water-thieving, light-polluting data center anywhere near our town (or any others for that matter).”
Data center critics argue the facilities consume large amounts of electricity and water in addition to straining local infrastructure. Despite those downsides, they often receive generous tax incentives while creating few permanent jobs.
However, supporters say data centers boost local economies, attract investment and support the growing demand for AI and cloud computing.
Talarico’s visit to San Antonio comes as new Fox News polling shows him leading Paxton by three percentage points. Another survey released earlier this week by the nonpartisan Texas Public Opinion Research found that Talarico is leading by five percentage points with less than 100 days until Election Day.
If elected, Talarico will be the first Democrat to win a statewide office in Texas in more than three decades.
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