Recent revelations that one of OpenAI's AI models may have breached another firm's systems during a security evaluation have intensified calls for regulation in Texas. Both major U.S. Senate candidates in the state now agree that guardrails are needed, even as they champion technological growth. Democratic candidate James Talarico emphasized striking a balance between innovation and protecting workers, while Republican Ken Paxton stressed competing with China but acknowledged the need to shield people from risks.
The Public Utility Commission of Texas is also moving to curb rising electricity costs tied to data centers. In a memo to Governor Greg Abbott, the PUC outlined requirements that large customers, including data centers, provide their own power and pay for interconnection upfront. Chairman Thomas Gleeson urged the legislature to add data centers to the Lone Star Infrastructure Protection Act, aiming to prevent foreign exploitation of critical systems. State Senator Charles Perry noted that over 200 data center applications are pending, but most will never be built.
Meanwhile, Democratic gubernatorial candidate Gina Hinojosa called on Abbott to issue an emergency moratorium on new data center development until lawmakers pass statewide regulations. She cited concerns from rural communities about water and electricity strain. Abbott, who once championed data center expansion, has shifted his position. He now wants to prohibit new AI data centers in rural areas, eliminate certain tax incentives, and require centers to fund their own infrastructure, generate their own power, and reuse water to lower costs for Texans.
The Texas Medical Association has also entered the fray, urging guardrails on prediction market apps like Kalshi and Polymarket, which they argue have the psychological effects of gambling. The group recommends a minimum age of 21 and restrictions on advertising near schools and on social media. These efforts reflect a broader push in the state to regulate emerging technologies without stifling innovation.
Source: The Hill