President Donald Trump’s ambitious AI initiative, called “Stargate,” is facing opposition from his own party in Texas. The project aims to build 20 powerful data centers across the country, with Texas chosen as the location for the first 10 centers. However, a new bill in Texas, Senate Bill 6, could potentially delay or derail the project by adding a six-month regulatory review process and new fees. The bill, which aims to prevent energy scarcity, is seen by Trump allies as a roadblock to a generational opportunity for the state.
Vance Ginn, a former White House economist, warned that the requirements in Senate Bill 6, such as high grid connection fees and a potential power cut off switch, could drive billion-dollar projects out of Texas. These data centers contribute to stabilizing the state’s energy grid by putting excess electricity back into it. If Texas becomes too costly or complex for these projects, they may end up moving to other states like Wyoming and Tennessee, jeopardizing the entire Stargate initiative.
Despite Texas Lieutenant Governor Dan Patrick’s assurances that the bill will actually support Trump’s Stargate Plan, Trump-aligned economists see it as a risky move that could hinder American progress in AI. Concerns are growing as Chinese startups make advances in AI models at a rapid pace, putting America’s standing in the global AI race at risk. Ginn warned that falling behind China by even six months could have long-lasting effects, not just on innovation but on national security as well.
President Trump has implemented policy measures to support the Stargate project, including steep tariffs on Chinese goods. However, these tariffs could also impact the price of crucial data center components, potentially affecting the project’s overall cost. Despite these tradeoffs, the administration views Stargate as essential for American leadership in the 21st century across various sectors, including education and healthcare. Ginn emphasized the importance of not letting fear of the unknown hold back progress in Texas.
Texas should be at the forefront of building AI infrastructure to support President Trump’s vision, according to Ginn. Fumbling this opportunity could lead to the state falling behind in the AI revolution. The future of the rest of the Stargate project beyond the initial data centers in Abilene is uncertain, as investors grow nervous and China continues to make significant strides in AI technology. The stakes are high, with national security implications tied to America’s ability to compete with other global leaders in AI development.
