Texas Republicans Turn Against AI Data Center Expansion

Republican politicians in Texas are beginning to oppose the rapid expansion of artificial intelligence data centers, signaling a shift from support for the Trump administration’s goal of making the United States dominant in the global AI race.

The change is especially notable in Texas, home to OpenAI’s flagship Stargate campus. Governor Greg Abbott once described the state as the “epicenter of AI development.” His re-election campaign now supports new restrictions, including additional regulation, reduced tax incentives, limits on development in rural communities, and measures addressing resource consumption and household bills.

Democratic candidate Gina Hinojosa has also made data centers a central campaign issue, calling them “the fight of this election season.”

The opposition is largely focused on local costs rather than opposition to AI itself. Concerns include rising electricity bills, strained water supplies, and light and noise pollution.

Texas reflects a broader political backlash over power prices, water consumption, tax breaks, and other effects associated with data center projects. With criticism now appearing across both major parties, technology companies may face increasing pressure to address community concerns beyond promising employment opportunities.