President Donald Trump A high-tech moon player may encounter a Texas-sized speed bump – it comes from his own party.
Trump’s AI InitiativeKnown as the “Star Gate”, it aims to build 20 super data centers nationwide. Backed by heavyweights like OpenAI, Oracle, Softbank and Acue-funded MGX, the project represents a future $500 billion bet, with Texas being selected as the ground zero for the top 10 centers.
But a new Texas bill, Senate Chapter 6, could delay or derail.
The legislation adds a six-month regulatory review to the existing 6-18-month schedule, while also requiring new fees and mandatory backup of generators, doubles approval time and inflation costs.
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President Donald Trump speaks in the Roosevelt Room in the White House, while SoftBank CEO Masayoshi’s son, Oracle co-founder, CTO and executive chairman Larry Ellison and Openai CEO Sam Altman took place in Washington, D.C. on January 21, 2025. (Andrew Harnik/Getty Images)
While the legislation is considered protection against another winter storm-style blackout, Trump allies warned that it could fish for a generation of opportunities.
“This bill will be a serious obstacle to the president’s vision,” Vance Ginn, president of Ginn Economic Consulting and former chief economist for the White House Management and Budget Office for the first semester of Trump, said in an exclusive interview with Fox News Digital.
“This is a misleading effort, stemming from fear: fear of energy scarcity, fear of artificial intelligence, fear of the future.”
According to Ginn, the bill’s high requirements, including a $100,000 grid connection fee and so-called “kill switches,” would allow the Xusas Electric Reliability Commission to cut down on data center power, which could eventually push these billion-dollar projects out of Texas entirely.
“These companies are not only utilizing energy,” Gene said. “Many of them actually put the excess power back on the grid. So, they didn’t hurt Texas, but helped stabilize it.”
Stargate has broken ground in Abilene, but the next 10 data centers are still in the air. If Texas becomes too costly or too complex, experts warn that competitors such as businesses in Wyoming and Tennessee courts may never happen, even without Texas infrastructure.
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“The Texas Legislature should work with President Trump to build an AI infrastructure, not to abandon the barriers,” Ginn added. “The AI revolution is here. If Texas fails, it will fall behind.”
The bill’s sponsor, Texas Lieutenant Gov. Dan Patrick, insisted that the legislation would not undermine Trump’s agenda. “Senate Bill 6 actually ensures President Trump’s Stargate program is successful,” Patrick said in a statement. “We are in trouble with the president, whose goal is to make the United States number one and dominate China in AI, data centers and cryptocurrencies.”
Openai CEO Sam Altman (R), accompanied by U.S. President Donald Trump, spoke at a press conference in the White House Roosevelt Room on January 21, 2025. (Andrew Harnik/Getty Images)
Even if Patrick’s re-election Trump endorsed, Trump’s unanimous economists said the state was playing dangerous games.
“We’ve seen that,” Gene warned. “Microsoft has backed off the project. Investors are nervous. Meanwhile, China is forging.”
A Chinese startup called DeepSeek has launched cutting-edge AI models in record time, which has sparked new anxiety about the U.S. position in the global AI arms race.
Trump announced investment in artificial intelligence (AI) infrastructure and raised questions on a range of topics. (Andrew Harnik/Getty Images)
“It’s not just innovation,” Gene said. “It’s national security. If we’re six months behind China, we probably wouldn’t have caught up.”
Trump announced last week that Trump has backed his AI push through hard policies, including tariffs on all imported blankets, as well as 125% tariffs on Chinese goods. But these tariffs may also raise the prices of critical data center components, from steel to electrical transformers.
Despite the cancellation of the trade-off, the Trump administration sees Stargate as the cornerstone of American leadership in the 21st century, from education to health care.
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“Texas should lead” Gene said. “We can’t let fear of the unknown stop us from retreating.”
