We should not be paying to bring AI Data Centers to Texas. This is happening. These data centers have been given substantial tax incentives to build in Texas. Texas is projected to forgo roughly $3.2 billion in sales-tax revenue over the next two years because of tax exemptions for qualifying data centers, many of which are being built to support the rapidly growing demand for AI.
That revenue will have to be paid by the taxpayers of Texas, instead of the data centers. The Texas biennium budget has ballooned from $187.5 billion in 2010 to $338.2 billion today. We, the taxpayers, bear the burden of government spending. The data centers that place greater demands on our resources are not paying like the rest of us. The question isn’t whether data centers generate economic activity. The question is whether the taxes and other revenues they generate adequately compensate Texas taxpayers for the public costs they impose.
Some would call this crony capitalism; others call this corporate welfare. Frankly, it could be called socialism.
While Greg Abbott attacks others as socialists, his annual report reeks of it. I have details in my policy statement post “The Abbott Report”. There are numerous taxpayer funded programs that allow the state of Texas to handout incentives to grow Texas.
The problem gets worse when you consider the mismanagement of these tax exemption programs. The Texas Tribune reported in July that 138 data centers had qualified for the exemption, but only 20 had been audited. Of those 20, six were found to be out of compliance with the requirements.
AI data centers are not alone. Texas socialism applies to many other industries to grow Texas while increasing demands on resources and placing the burden on taxpayers.
This is why my policy statement “Free Market Sustainability” is a cornerstone of my campaign. Growth needs to pay for itself. It should be those that come to Texas that pay for their impact.
I do not oppose an AI data center that pays for their impact or provides their own resources. We cannot bulldoze existing facilities. If we try to stop a project that already went through the regulatory process, got the green light, and broke ground there will be lawsuits that will defend the data centers. While I do have some concerns about AI technology, my policy statement “AI” shows that addressing risks through the rule of law is the best approach.
I am the only candidate for governor that is offering a sustainable economic policy. There will be AI data centers in Texas, but Free Market Sustainability offers the best way to ensure growth pays for itself while relieving the burden of growth from taxpayers and being responsible with our use of resources.