Texas data center freeze could derail AI growth and national security

The author contends that AI will become the cornerstone of the next economic era, boosting productivity, opportunity and U.S. security. Texas' recent halt on data-center permits, he argues, squanders the state's hard-won advantage of attracting capital from high-tax jurisdictions and threatens to cede leadership to places like Virginia. Defense contractors such as Lockheed Martin, Raytheon, Boeing, Northrop Grumman, BAE Systems and SpaceX depend on local computing power for autonomous systems and battlefield modeling, making data centers a modern defense asset.

To meet the surge in compute demand without destabilizing the ERCOT grid, policymakers should double down on reliable baseload generation, including natural-gas upgrades and fast-tracked small modular reactors. Streamlining NEPA reviews, clearing state permitting backlogs, and repurposing brownfield sites are presented as more sensible than restrictive bans. Finally, the author calls for ending sweeping tax abatements and requiring hyperscalers to fund transmission and water infrastructure, arguing that free-market competition—not state subsidies—will preserve Texas' role in AI leadership.