Texas lawmakers have made artificial intelligence data centers a top legislative priority, coinciding with a surge of campaign contributions from major tech companies.
Developers of these centers—worth trillions collectively—have donated millions to influence state-level elections in 2026 ahead of the 2027 legislative session. Meta Platforms invested $1.3 million in Texas primary elections and is contributing $65 million nationwide to support pro-AI candidates, while Elon Musk, through xAI and X, gave $500,000 to a PAC backing state Senate candidates.
Google has committed $40 billion in new data centers across Armstrong and Haskell counties, and Facebook plans a $10 billion facility near El Paso. Most contributions have gone to Republican candidates, including Gov. Greg Abbott, who received $1.6 million from tech executives last year; Abbott began 2026 with a $105 million campaign fund. PACs like Meta’s Forge the Future and the Texas Senate Leadership Fund have funneled money into targeted campaigns with the aim of supporting lawmakers favorable to AI and data center growth.
Data centers are highly energy- and water-intensive, raising worries about rising utility costs, land use conflicts, and environmental impacts. State lawmakers, including Sen. Phil King and Lt. Gov. Dan Patrick, are facing pressure to address constituents’ concerns while maintaining Texas’ pro-business climate.
Texas passed a law in 2025 regulating AI, prohibiting uses that infringe on rights, encourage self-harm, or involve explicit material such as deepfakes or child exploitation. With federal AI legislation largely stalled, states like Texas have become the primary arena for shaping policy.
Tech companies aim to prevent a “patchwork” of regulations across states, lobbying to avoid limits they view as restrictive. While some AI developers, like Anthropic, advocate for safe-use regulations, most tech contributions in Texas have backed candidates seeking minimal oversight.
Experts warn that the combination of high-dollar contributions and minimal regulatory checks could enable the industry to shape state policy to its advantage, potentially at the expense of residents’ costs and environmental concerns.
Lt. Gov. Patrick emphasized balancing AI and crypto growth with protections for electricity rates, stating, “We cannot let it drive the rates up of residences and businesses.” This surge in political influence highlights Texas’ role as a central hub for AI development, second only to Virginia in data center capacity, and underscores the increasing stakes in state-level elections amid the AI boom.
