Texas lawmakers are considering a new bill, SB 6, that aims to improve the state's power grid. However, some critics believe it could harm the state's competitiveness in artificial intelligence (AI).
• SB 6, supported by Lt. Gov. Dan Patrick, targets "large load customers," which are facilities using 75 megawatts of power or more.
• Proponents argue that the bill is essential for reducing pressure on Texas' independent power grid.
• Critics worry that the bill may contradict efforts outlined by President Trump to establish AI leadership in the U. S. through the Stargate Project, a $500 billion partnership focusing on AI development.
• Texas has already begun benefiting from the Stargate Project with 10 data centers under construction in Abilene.
• The Trump administration is actively reducing regulations to support economic growth; they claim to have saved $180 billion in regulations since 2017.
• Vance Ginn, an economist, argues that added regulations could hinder competition, especially for smaller firms, resulting in higher prices for AI and related technology.
• The bill will require large facilities to install backup generators and pay a $100,000 screening fee for state approval. They must also have a remote "kill switch" for power management.
• Critics express concerns about the command-and-control nature of the proposed regulations, which may infringe on property rights and affect businesses.
• Lawmakers state that these reforms are necessary to prevent power outages like those experienced during Winter Storm Uri in 2021.
• Lt. Gov. Patrick insists that Texas will continue to lead in technology despite concerns about energy demands from data centers.
• While SB 6 may not impact the Stargate Project directly, it could limit future business growth in Texas.
SB 6 is a significant legislative effort aimed at securing Texas’s energy future while raising concerns about its potential impact on innovation and competition in the AI sector.
https://www.dailywire.com/news/how-a-texas-bill-could-stifle-trumps-push-for-american-ai-dominance
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