Ken Paxton proposes federal ban on Chinese tech in data centers

Texas Attorney General and Republican Senate candidate Ken Paxton has unveiled a four-point federal legislative platform targeting data centers and artificial intelligence. The proposal includes a ban on Chinese-linked technology within U.S. data centers and critical infrastructure. Additionally, Paxton proposes making data center operators criminally liable if their facilities power AI chatbots that endanger children.

At the state level, Paxton’s plan includes repealing sales tax exemptions for data centers and supporting regulations to limit local impacts, such as mandating closed-loop water systems and requiring centers to fund their own energy. These moves come as Texas Republicans express growing skepticism regarding the rapid expansion of the AI industry ahead of elections.

Democratic opponent James Talarico has criticized the platform, alleging that Paxton’s sudden shift follows reports that his political operation has received nearly $450,000 from data center-affiliated donors. Talarico noted that Paxton previously voted for the sales tax exemptions that fueled the industry's growth in Texas.