James Talarico brought Texas’ data center fight to San Antonio on Thursday, rejecting a blanket moratorium while promising tougher rules for an industry accused of draining water, stressing the power grid and delivering too few permanent jobs. The Democratic U.S. Senate nominee made his case during a visit to the UA Local 142 Plumbers and Pipefitters training center, where he met union members and tried his hand at welding.
As reported by San Antonio Current, Talarico said data centers should not be welcomed into communities unless they create good-paying union jobs and support local residents. He also contrasted his position with Republican opponent Ken Paxton, accusing the Texas attorney general of favoring wealthy interests over working people.
Talarico Wants Data Centers To Pay Their Own Way
Talarico’s proposed “Hold Data Centers Accountable” approach would set minimum federal standards for grid reliability, environmental protections, jobs and disclosure. The Texas Tribune reported that the plan also calls for ending Texas’ data center sales-tax exemption, requiring large energy users to cover their own infrastructure and interconnection costs, and forcing facilities to use closed-loop water systems.
The plan would additionally give local communities more authority over proposed projects and require the release of records showing tax breaks awarded to individual data centers. That local-control piece could prove especially important in rural areas, where residents and county officials have complained that massive server campuses can arrive faster than the rules needed to manage them.
His Plan Overlaps With Abbott’s Regulatory Push
Talarico’s position is not entirely out of step with Gov. Greg Abbott, who has shifted from promoting Texas as an artificial-intelligence hub to calling for new guardrails. In a June directive to the Public Utility Commission of Texas and ERCOT, the governor’s office urged regulators to prevent data centers from shifting development costs onto Texans, require more water-efficient cooling and reconsider tax incentives.
Abbott’s data center directive also called for facilities to contribute to Texas’ electric capacity instead of simply adding demand. The governor set July 31 as a deadline for the PUC to begin action aimed at reducing transmission costs paid by residential ratepayers, adding another layer of urgency to Friday’s policy debate.
Democrats Remain Split Over A Moratorium
Talarico’s refusal to call for a complete pause separates him from Gina Hinojosa, the Democratic nominee for governor. In a July proposal, Hinojosa’s campaign urged Abbott to impose a moratorium until lawmakers can meet and establish statewide protections.
The disagreement reflects a broader question facing Texas Democrats: whether to stop new projects outright or regulate them aggressively enough to make them pay for their impact. Talarico is betting that a pro-growth message paired with strict requirements can appeal to voters who want technology investment without handing developers a blank check.
Local Governments Are Testing Their Legal Limits
That debate is unfolding alongside a fight over how much authority local governments actually have. Texas Public Radio reported that Hill County withdrew a one-year data center moratorium after a developer sued, then adopted a review process requiring information about water use, traffic, noise and economic effects.
Counties face particular limits in unincorporated areas because they generally lack zoning authority, while cities retain broader land-use powers, according to CBS Texas. That legal gray area makes Talarico’s call for local approval authority more than a campaign talking point—it would require a meaningful change in how Texas handles large industrial developments.
Data Center Boom Becomes A 2026 Campaign Issue
Data center supporters say the facilities attract investment, strengthen local economies and serve the growing demand for artificial intelligence and cloud computing. Critics counter that they consume huge amounts of electricity and water, strain roads and other infrastructure, receive generous tax incentives and often create relatively few long-term jobs, the San Antonio Current notes.
With the 2027 legislative session looming and fewer than 100 days before Election Day, Texas candidates are turning that clash into a statewide test of who pays for the AI boom. Talarico’s San Antonio appearance made his position clear: Texas can keep building, but not without stronger rules, public disclosure and a larger share of the benefits reaching the communities hosting the server farms.
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