EPISODE 3
Bought by data centers
Ken Paxton has taken hundreds of thousands of dollars from the data center industry while refusing to say if local communities can stop data centers in their communities. He voted to give data centers massive tax breaks, which will cost Texas taxpayers 3.3 billion dollars, allowing them to use our water and electricity in communities across Texas, even though that will cause electricity prices to skyrocket.
Here is some more context on Paxton's record:
Paxton has benefited from hundreds of thousands of dollars worth of data center industry money pouring into his political operation. Through June 2026, Paxton’s federal political operation has received at least $448,000 from executives and political committees of companies building, operating and investing in data centers, according to a NOTUS review of Federal Election Commission reports filed by several related political committees — his campaign, leadership PAC, joint fundraising committees and a pro-Paxton super PAC called Lone Star Liberty PAC.
In 2013, Paxton voted for a sales tax exemption for qualifying data centers. The exemption was intended to help Texas compete for large, capital-intensive technology investments, but now the exemption is estimated to cost the state approximately $3.3 billion during the 2028-29 biennium, an increase of more than 22,000 percent over the original estimate.
In May 2026, Paxton appeared on a podcast and suggested he was open to the development and growth of data centers in Texas as a way to compete with China in the AI race. He said, “It is a celebration that we are open for business” in Texas, but acknowledged the need to strike a balance given tensions with local communities that do not want these facilities. He ultimately said that each project should be decided by state and local officials in consultation with their communities.
As AG, Paxton has taken relatively little action on data centers compared to other issues. He has yet to issue a formal legal opinion on local governments' authority to block data center projects. However, reporting suggests he will likely wait until after the November election, allowing him to avoid taking a position on the issue while on the campaign trail.
In April 2026, he ordered the City of San Angelo to release most records related to a proposed data center project in the Paul Ann district, allowing only limited attorney-client privileged material to remain withheld.
In November 2025, Paxton also opened an investigation into CATL, a Chinese battery manufacturer, and other foreign-adversary-linked equipment used in Texas grid infrastructure, including battery storage and data centers. Some local governments have reportedly conditioned permitting decisions on the outcome of that investigation.