AUSTIN, Texas — Texas Attorney General Ken Paxton’s Senate campaign has received at least $448,000 from data center executives and political committees while his office considers Hood County’s request for a ruling on whether the county can impose a moratorium on data center development.
The Washington-based digital news outlet NOTUS reported that Paxton’s political operation received the contributions from executives and political committees connected to data center companies through June.
Hood County asked the attorney general’s office in February whether it had the authority to temporarily halt data center development amid opposition from residents. The request remains pending, according to the Attorney General’s website.
Paxton’s campaign told KERA that he plans to release a policy proposal on data centers soon.
“AG Paxton’s standard hasn’t changed,” campaign spokesperson Madison Cercy said. “He is laser-focused on protecting Texas families, Texas water and the Texas grid.”
The issue has emerged as a topic in the U.S. Senate race between Paxton and Democratic state Rep. James Talarico. Talarico called for greater regulation of data centers at a rally in Arlington last week and proposed an “AI dividend” that would give Americans a share of data center profits.
NOTUS reported that Lone Star Rising, a super PAC supporting Talarico, received a $10 million donation from Reid Hoffman, LinkedIn co-founder and a supporter of data center development. Federal law prohibits campaigns from coordinating with outside groups such as super PACs. Talarico has also criticized super PACs and called for banning them.
Hood County has faced months of opposition to proposed data centers, with residents citing concerns over water use, wastewater treatment, traffic, property values, noise and the effect on the county’s rural character. County commissioners approved the concept plan for the Comanche Circle data center development in June.
Nearby Somervell County commissioners unanimously approved a resolution in May opposing new data centers and urged lawmakers to increase regulation.
The debate comes as Gov. Greg Abbott has ordered state regulators to review proposed data centers before they can connect to the Texas power grid. The review includes energy and water use and potential effects on nearby communities.
Brian Crawford, whose property is near the Comanche Circle development, said he was not surprised that data center interests contributed to Paxton’s campaign.
“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 contributed $17,000 to political action committees associated with Paxton’s campaign in May, is developing another data center in Fort Worth near Crawford’s home, according to federal campaign finance records.
Paxton said in a May interview with the business podcast Valuetainment that the growth of AI data centers presents competing interests. He said the United States needs to maintain an advantage over China in artificial intelligence while acknowledging concerns from communities opposing nearby projects.
“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.”
Paxton said local officials should make decisions on data center projects, with state leaders providing input when necessary.