Southwest
Texas GOP could stall Trump’s bold AI vision with red tape as China races ahead: 'Investors are nervous'
President Donald Trump’s high-tech moonshot may hit a Texas-sized speed bump — and it’s coming from his own party.
Trump’s AI initiative, dubbed “Stargate,” aims to build 20 ultra-powerful data centers across the country. Backed by heavyweights like OpenAI, Oracle, SoftBank, and the UAE-funded MGX, the project represents a $500 billion bet on the future with Texas chosen as ground zero for the first 10 centers.
But a new Texas bill, Senate Bill 6, could delay or derail that momentum.
The legislation adds a six-month regulatory review on top of an existing 6–18-month timeline, while also requiring new fees and mandatory backup generators, doubling approval time and inflating costs.
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President Donald Trump speaks in the Roosevelt Room of the White House while SoftBank CEO Masayoshi Son, Oracle co-founder, CTO and Executive Chairman Larry Ellison, and OpenAI CEO Sam Altman look on on January 21, 2025 in Washington, DC. (Andrew Harnik/Getty Images)
And while the legislation is pitched as a safeguard against another Winter Storm Uri-style blackout, Trump allies warn it could torpedo a generational opportunity.
“This bill would be a serious roadblock to the president’s vision,” said Vance Ginn, president of Ginn Economic Consulting and former chief economist at the White House Office of Management and Budget during Trump’s first term, in an exclusive interview with Fox News Digital.
“It’s a misguided effort that’s rooted in fear: fear of energy scarcity, fear of AI, fear of the future.”
According to Ginn, the bill’s hefty requirements, including a $100,000 grid connection fee and a so-called “kill switch” that would let the Electric Reliability Council of Texas cut power to data centers, could end up pushing these billion-dollar projects out of Texas entirely.
“These companies aren’t just using energy,” Ginn said. “Many of them actually put excess electricity back onto the grid. So instead of hurting Texas, they help stabilize it.”
Stargate has already broken ground in Abilene, but the next 10 data centers are still up in the air. If Texas becomes too costly or complicated, experts warn the back half of the project might never happen — even as rival states like Wyoming and Tennessee court businesses without Texas’s infrastructure.
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“The Texas legislature should be working in lockstep with President Trump to build out AI infrastructure, not throwing up barriers,” Ginn added. “The AI revolution is here. If Texas fumbles this, it will fall behind.”
The bill’s sponsor, Texas Lieutenant Governor Dan Patrick, insists the legislation won’t hurt Trump’s agenda. “Senate Bill 6 actually ensures President Trump’s Stargate Plan is a success,” Patrick said in a statement. “We are in lockstep with the president on his goal to make America number one, and dominate China on AI, data centers, and cryptocurrency.”
OpenAI CEO Sam Altman (R), accompanied by U.S. President Donald Trump, speaks during a news conference in the Roosevelt Room of the White House on January 21, 2025. (Andrew Harnik/Getty Images)
Even with a Trump endorsement for Patrick’s re-election, Trump-aligned economists say the state is playing a dangerous game.
“We’re already seeing signs of this,” Ginn warned. “Microsoft has pulled back on projects. Investors are nervous. And meanwhile, China’s forging ahead.”
A Chinese startup called DeepSeek has made headlines for rolling out cutting-edge AI models in record time, triggering fresh anxiety about America’s standing in the global AI arms race.
Trump announced an investment in artificial intelligence (AI) infrastructure and took questions on a range of topics. (Andrew Harnik/Getty Images)
“This isn’t just about innovation,” Ginn said. “This is national security. If we’re six months behind China, we may never catch up.”
Trump has backed up his AI push with hard policy, including a 10% blanket tariff on all imports and a steep 125% tariff on Chinese goods, announced just last week. But those tariffs could also raise the price of key data center components, from steel to electrical transformers.
Despite the tradeoffs, the Trump administration sees Stargate as a cornerstone of 21st-century American leadership in everything from education to healthcare.
“Texas should be leading,” Ginn said. “We can’t let fear of the unknown hold us back.”
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Jury says it is deadlocked in trial of man accused in Palisades Fire
Jurors deliberating the fate of the man accused of starting the Palisades Fire, one of the most destructive wildfires in California’s history, failed to reach a verdict Thursday afternoon, telling the judge they were deadlocked.
A spokesperson from the United States Attorney’s Office told KTLA that jurors will continue to deliberate until they reach a verdict or give up.
Jonathan Rinderknecht, 30, a former Uber driver and one-time Pacific Palisades resident, is accused of starting the Lachman Fire on New Year’s Eve. The fire continued to smolder underground for about a week, even after Los Angeles firefighters believed it had been extinguished.
Flames reignited on Jan. 7, erupting into the deadly Palisades Fire that killed 12 people and destroyed thousands of homes in the upscale community, authorities said.
Prosecutors argued that Rinderknecht deliberately set the fire, claiming he had grown increasingly resentful of wealthy residents and viewed Pacific Palisades as a symbol of that frustration.
“Their case, though circumstantial, is strong,” KTLA legal analyst Alison Triessl said. “The defense is relying on, can they (prosecutors) show beyond a reasonable doubt that Mr. Rinderknecht actually started this fire and it wasn’t the result of fireworks or some intervening cause.”
The defense argued there is no direct physical evidence tying Rinderknecht to the fire and said the prosecution’s case relies entirely on circumstantial evidence. Rinderknecht did not testify during the trial.
Defense attorney Steve Haney spoke outside the courthouse Wednesday about why he believes it will be difficult for prosecutors to prove how the fire started.
“The lack of scene preservation. The fact that they got there after a lot of the evidence was missing. Not a lot of direct evidence. This is a circumstantial case, which is always difficult as a prosecutor to prove,” Haney said.
Rinderknecht, who was arrested and indicted last October, faces up to 45 years in prison if found guilty of three arson counts, including destruction of property by means of fire, arson affecting property used in interstate commerce and timber set afire.
Tony Kurzweil contributed to this report
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