James Talarico Says AI Data Centers Must Work for Texans

Texas State Rep. James Talarico says artificial intelligence should work for the public rather than impose costs on the communities hosting the infrastructure behind it.

The Democratic nominee for U.S. Senate focused on the rapid construction of AI data centers across Texas. He argued that projects should not raise household utility bills, drain local water supplies, receive large tax incentives without public benefit, or move forward without meaningful community approval.

“AI should be working for us, not against us,” Talarico said.

Why data centers became a campaign issue

AI systems rely on facilities containing large numbers of specialized computer servers. Those facilities can require substantial electricity for computing and cooling. Their water use varies widely depending on climate, cooling technology, operating practices, and whether the power plants supplying them also consume water.

Texas has attracted projects through available land, energy infrastructure, tax incentives, and a business-friendly regulatory environment. The scale of proposed development has also raised questions about who should pay for new generation and transmission capacity.

If utilities build infrastructure to serve large new customers, regulators must decide how those costs are distributed. Requiring data centers to pay for their own connections and contracted capacity can reduce the risk that households subsidize expansion. It does not guarantee lower residential bills, because fuel prices, grid investments, weather, and the wider mix of demand still matter.

Water presents a similarly local problem. A project that is manageable in one region may be difficult to support in a drought-prone community with limited supply. Transparent reporting is necessary before residents can evaluate the tradeoff.

The politics are broader than one party

Talarico’s position overlaps with concerns voiced by Texas Republicans, including Gov. Greg Abbott, who ordered state regulators to audit proposed data centers seeking access to the electric grid. That cross-party pressure shows how quickly the issue has moved from technology policy to household economics and local control.

An August University of Texas/Texas Politics Project poll found 57 percent of Texas voters opposed construction of a data center in their community, compared with 30 percent who supported it. Voters expected potential benefits for technology access and employment but were much more worried about local energy bills, water reliability, the electric grid, and the environment.

Talarico’s phrase leaves room for AI development while placing conditions on where and how its infrastructure is built. The harder work is converting that principle into enforceable rules for cost allocation, water disclosure, tax incentives, emergency power, noise, and public participation.