How a Texas Law Might Disrupt Trump’s Push for U.S. AI Supremacy

Texas lawmakers are considering a new energy bill, SB 6, that supporters claim will strengthen the state’s power grid. But critics warn that it could cripple America’s ability to dominate the AI race a key priority for President Donald Trump’s administration.

At the heart of the issue is Trump’s Stargate Project, a $500 billion initiative designed to secure America’s place as the global leader in artificial intelligence. Texas was chosen as the first state for investment, with 10 major data centers already under construction in Abilene.

However, SB 6 threatens to slow down AI expansion by imposing burdensome regulations on "large load customers" facilities that use over 75 megawatts of power. The bill would:

• Require backup generators for all large facilities, increasing operational costs.

• Mandate a $100,000 screening fee for state approval, potentially driving out smaller AI firms.

• Install state-controlled "kill switches" on data centers, allowing regulators to remotely shut down operations.

Economist Vance Ginn warns that such regulations will increase costs, reduce competition, and discourage future AI investment in Texas. "All this is going to contribute to not as much abundance and prosperity in the future," Ginn told The Daily Wire.

Republican lawmakers backing the bill argue that it’s necessary to prevent another grid disaster like Winter Storm Uri, which left millions of Texans without power in 2021. But even Lt. Gov. Dan Patrick, who is pushing SB 6, insists there is “no daylight” between him and Trump on this issue and that Texas will remain the leader in AI development.

The Trump administration has already slashed $180 billion in federal regulations to ensure America stays ahead in AI, and White House officials aren’t backing down. One administration source put it bluntly: “Anyone standing in the way of the Golden Age of American Energy will regret it.”

While SB 6 won’t derail the Stargate Project entirely, it could block the flood of private AI investment that Texas and America need to stay ahead of China. If Texas lawmakers want to secure America’s future in AI, they need to be removing barriers, not adding more. Share this article or subscribe to our newsletter for updates.