Trump’s AI infrastructure plans could face delays due to Texas Republicans, including Dan Patrick

AUSTIN – The Guardian reports that Donald Trump’s plans to expand infrastructure to produce artificial intelligence in the US could face years of delays with the Republican-controlled Texas statehouse poised to pass legislation that imposes regulatory hurdles on data centers. The Trump administration earlier this year announced that a joint venture called Stargate would construct a total of 20 data centers to provide computing power for AI as part of an effort to help the US compete against China for leadership of the technology and spur investors to pursue AI projects. The companies behind Stargate – OpenAI, SoftBank, Oracle and MGX, an investor backed by the United Arab Emirates, which together have pledged up to $500bn – chose Texas, with its loose regulation and pre-existing energy infrastructure for the first data center.

But the construction of future data centers to support Trump’s AI agenda faces headwinds as a result of the Texas legislation SB6, which introduces new regulatory measures including a six-month review process in addition to the existing 6-18 month evaluation period with the goal of protecting its own power grid in the face of storms. The effects of the proposed bill are two-pronged: the regulatory measures could result in a maximum 24-month approval process, while the requirement to pay additional fees to the Texas grid operator and install backup generators would dramatically raise construction costs. That could lead tech companies to scale back planned construction of data centers in the state, according to equity analysts. Stargate, for instance, has started building its first 10 data centers in Abilene, Texas, but it is unclear if the second set of 10 would be subject to the bill. And if tech companies do not build in Texas, they might not build the data centers at all, directly hampering Trump’s AI initiative. Other states, from Wyoming to Wisconsin to Tennessee, have courted those construction projects, but lack the infrastructure that exists in Texas.