James Talarico calls out Texas Senate rival Ken Paxton’s ‘sad attempt to reverse course’ on data centers: ‘Texans can’t afford his corruption’

Texas Democratic Senate nominee James Talarico attacked Republican rival Ken Paxton, accusing the attorney general of using artificial intelligence to produce a graphic outlining his plan to regulate data centers and framing the proposal as a politically motivated reversal influenced by industry donations.

Paxton posted his “Texas First Data Center Plan” on X, writing that the proposal would “protect our grid, our communities and our children while ensuring America beats Communist China in the AI race.”

The post drew scrutiny after X applied its “Made With AI” label to the accompanying graphic. The platform uses the label to identify content it determines was likely generated with artificial intelligence, including through embedded metadata.

Talarico’s campaign responded within hours.

“Ken Paxton has taken nearly half a million dollars from the data center industry, voted to flood Texas with data centers by giving them billions in tax handouts and has refused to use his power as attorney general to respond to Texans’ requests to block data center development in their communities,” Talarico said in a statement shared on X. “Now he’s scared his ties to big data center companies will lose him the election, so he’s making a sad attempt to reverse course by releasing a plan he literally used AI to make. Texans can’t afford a Senator who’s bought by big data center companies. Texans can’t afford Ken Paxton’s corruption.”

What is Ken Paxton’s plan?

Paxton’s four-point proposal calls for federal legislation barring Chinese technology from American data center infrastructure. It would hold data center operators criminally liable if AI systems powered by their facilities are found to endanger children’s safety.

“There’s no doubt in my mind that the United States will beat the Chinese Communist Party in the AI race,” Paxton said in a statement. “This plan will ensure that happens while putting Texas First, protecting our culture and land and safeguarding our families and communities. My plan will also work to ensure that data centers are not utilized to power AI platforms that endanger our children.”

The plan also backs a deregulatory approach at the federal level. Paxton pledged to co-sponsor the DATA Act, which his campaign says would reduce regulatory barriers, expand power generation and prevent data centers from driving up electricity costs by streamlining permitting and modernizing federal oversight.

At the state level, Paxton said he would support Republican Gov. Greg Abbott‘s efforts to tighten oversight of new data center projects. Those measures include restrictions on facilities in rural residential areas, limits on noise and light pollution, traffic protections and improved coordination during periods of grid stress.

The proposal also calls for repealing certain tax exemptions and incentives for data centers, requiring operators to pay for necessary electricity infrastructure, contribute additional generating capacity to the Texas grid, and adopt closed-loop water-cooling systems.

Ken Paxton pushes back on James Talarico’s donors

Paxton’s campaign rejected Talarico’s characterization and turned the donor-influence argument back on the Democratic nominee.

According to Fox 7 Austin, Paxton’s campaign said Talarico had accepted money from “data center-affiliated donors.” Talarico’s campaign countered that Paxton had the authority as attorney general to challenge data center development but did nothing because he was influenced by industry donors.

The dispute follows weeks of growing attention to data centers in the Senate race. Talarico has held bipartisan roundtables on the issue and repeatedly criticized Paxton for accepting nearly $500,000 in donations funneled through political action committees supporting his campaign, according to Fox News reporting on the industry’s impact on power and water costs.

A midterm flashpoint across Texas

Data centers have become one of the most contentious issues in Texas politics as facilities supporting AI applications have proliferated across the state.

A Texas Politics Project poll conducted in June found that 56 percent of voters opposed data center construction in their communities, while 29 percent supported it. Opposition was strongest in rural and suburban areas.

The backlash became significant enough for Abbott to reverse his earlier stance on the industry’s rapid and largely unregulated expansion.

Opposition has also come from outside politics. Musician Willie Nelson has urged residents to oppose an AI data center planned near his hometown of Abbott, Texas, according to Fox 7 Austin.

Critics aligned with Talarico have argued that Republicans now calling for tougher oversight, including Paxton, previously supported policies encouraging data center expansion through tax incentives and other pro-development measures.

The debate has increasingly shifted from whether data centers should be built to which candidate can credibly claim to regulate their rapid growth while distancing himself from industry money.

The race heading into November

Texas has not elected a Democrat to statewide office since 1994, but the 2026 Senate race has drawn national attention as a potential battleground.

Paxton won a contentious Republican primary challenge against incumbent Sen. John Cornyn, while Talarico has built a substantial financial advantage.

Talarico’s campaign had raised approximately $72 million, compared with roughly $16.8 million for Paxton, according to campaign finance figures reported by KHOU.

Federal Election Commission records showed Talarico’s authorized committees reported about $68.6 million in total receipts through June 30, while Paxton’s authorized committees reported about $9.25 million.

Polling has shown a close race. A Texas A&M poll found Talarico with 47 percent support among likely voters, compared with 43 percent for Paxton.

The Cook Political Report and Fox News have classified the race as a toss-up, while Sabato’s Crystal Ball continues to rate it as “lean” Republican.

President Donald Trump has carried Texas in three consecutive presidential elections.