President Donald Trump’s high-tech moonshot could hit a Texas-sized pace bump — and it’s coming from his personal get together.
Trump’s AI initiative, dubbed “Stargate,” goals to construct 20 ultra-powerful knowledge facilities throughout the nation. Backed by heavyweights like OpenAI, Oracle, SoftBank, and the UAE-funded MGX, the challenge represents a $500 billion wager on the longer term with Texas chosen as floor zero for the primary 10 facilities.
However a brand new Texas invoice, Senate Invoice 6, may delay or derail that momentum.
The laws provides a six-month regulatory evaluation on high of an present 6–18-month timeline, whereas additionally requiring new charges and necessary backup turbines, doubling approval time and inflating prices.
EXCLUSIVE: WHITE HOUSE ROLLS OUT IMPLEMENTATION OF AI FOR FEDERAL EMPLOYEE RECORDS
President Donald Trump speaks within the Roosevelt Room of the White Home whereas SoftBank CEO Masayoshi Son, Oracle co-founder, CTO and Government Chairman Larry Ellison, and OpenAI CEO Sam Altman look on on January 21, 2025 in Washington, DC. (Andrew Harnik/Getty Photos)
And whereas the laws is pitched as a safeguard in opposition to one other Winter Storm Uri-style blackout, Trump allies warn it may torpedo a generational alternative.
“This bill would be a serious roadblock to the president’s vision,” stated Vance Ginn, president of Ginn Financial Consulting and former chief economist on the White Home Workplace of Administration and Funds throughout Trump’s first time period, in an unique interview with Fox Information Digital.
“It’s a misguided effort that’s rooted in fear: fear of energy scarcity, fear of AI, fear of the future.”
Based on Ginn, the invoice’s hefty necessities, together with a $100,000 grid connection price and a so-called “kill switch” that might let the Electrical Reliability Council of Texas minimize energy to knowledge facilities, may find yourself pushing these billion-dollar initiatives out of Texas completely.
“These companies aren’t just using energy,” Ginn stated. “Many of them actually put excess electricity back onto the grid. So instead of hurting Texas, they help stabilize it.”
Stargate has already damaged floor in Abilene, however the subsequent 10 knowledge facilities are nonetheless up within the air. If Texas turns into too expensive or sophisticated, consultants warn the again half of the challenge would possibly by no means occur — at the same time as rival states like Wyoming and Tennessee court docket companies with out Texas’s infrastructure.
WHITE HOUSE SCIENCE AND TECHNOLOGY CHIEF WARNS CHINA IS ‘CATCHING UP’ IN AI RACE
“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 invoice’s sponsor, Texas Lieutenant Governor Dan Patrick, insists the laws gained’t damage Trump’s agenda. “Senate Bill 6 actually ensures President Trump’s Stargate Plan is a success,” Patrick stated in an announcement. “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 throughout a information convention within the Roosevelt Room of the White Home on January 21, 2025. (Andrew Harnik/Getty Photos)
Even with a Trump endorsement for Patrick’s re-election, Trump-aligned economists say the state is taking part in a harmful recreation.
“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 language startup referred to as DeepSeek has made headlines for rolling out cutting-edge AI fashions in file time, triggering contemporary anxiousness about America’s standing within the world AI arms race.
Trump introduced an funding in synthetic intelligence (AI) infrastructure and took questions on a variety of matters. (Andrew Harnik/Getty Photos)
“This isn’t just about innovation,” Ginn stated. “This is national security. If we’re six months behind China, we may never catch up.”
Trump has backed up his AI push with onerous coverage, together with a ten% blanket tariff on all imports and a steep 125% tariff on Chinese language items, introduced simply final week. However these tariffs may additionally increase the worth of key knowledge middle parts, from metal to electrical transformers.
Regardless of the tradeoffs, the Trump administration sees Stargate as a cornerstone of Twenty first-century American management in every part from schooling to healthcare.
CLICK HERE TO GET THE FOX NEWS APP
“Texas should be leading,” Ginn stated. “We can’t let fear of the unknown hold us back.”
