Texas Republicans Could Delay Trump’s Infrastructure Plans for AI

President Donald Trump recently launched a big plan to help the United States become a leader in artificial intelligence (AI). The project, called Stargate, involves major companies like OpenAI, SoftBank, Oracle, and MGX, an investor backed by the United Arab Emirates. Together, they have promised to invest up to $500 billion to build 20 new data centers across the country. These data centers are important because they provide the computing power needed to train and run AI systems.

The first set of 10 data centers is already being built in Abilene, Texas. Texas was chosen because it has fewer regulations and a strong energy infrastructure, making it easier and faster to build. However, this plan may now face delays because of a new bill being pushed by Texas Republicans.

The bill, known as SB6, introduces new rules for building large data centers. It includes a six-month review process on top of the current evaluation period, which can take up to 18 months. This means getting approval for a new data center could take as long as two years. On top of that, companies would have to pay extra fees to the state’s power grid operator and install backup generators. These new rules could make building data centers more expensive and time-consuming.

Some experts believe these changes could discourage tech companies from continuing their construction plans in Texas. If the companies decide not to build the second set of 10 data centers, it could hurt Trump’s AI goals. Other states, like Wyoming, Wisconsin, and Tennessee, are interested in hosting these projects, but they do not have the same level of infrastructure as Texas.

Texas officials say the bill is meant to protect the state’s power grid. They want to avoid a repeat of what happened during Winter Storm Uri in 2021 when millions of people lost power and over 240 people died. Lieutenant Governor Dan Patrick, who supports the bill, says it will actually help Trump’s Stargate plan succeed. He argues that companies should provide their own power so that regular people and small businesses don’t end up paying higher costs.

While many Texas Republicans back the bill, even critics agree that another power outage could be politically damaging. Several officials were removed after the 2021 blackout, and lawmakers don’t want to risk another crisis. At the same time, people worry that these new regulations could slow down investment in important technology like AI.

There are also other challenges facing Trump’s AI plans. The global economy is uncertain, and many tech companies are being more careful with their spending. Microsoft has already canceled or delayed some data center projects in the U.S. because of these concerns. Also, Trump’s recent tariffs on imports, including a 125% tariff on Chinese goods, could raise the cost of materials needed to build the centers.

In the end, while Trump’s Stargate project aims to make America a global leader in AI, new laws in Texas and other economic factors could cause major delays. If tech companies pull back on building data centers, it could slow down the country’s progress in the fast-growing world of artificial intelligence.

It is strategically crucial for the U.S. to maintain its AI industry leadership, and companies like D-Wave Quantum Inc. (NYSE: QBTS) are banking on the existing favorable environment to develop and commercialize tech solutions geared at enabling rapid AI expansion and deployment.

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS

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