There is no need to choose between winning the AI race and having affordable electricity. Data centers consume a lot of electricity and will therefore raise electricity demand across the country, but demand alone does not determine whether household rates rise. Texas’ data centers can strengthen the state’s economy without forcing households to pay higher electricity rates. Data centers have been around for years, making everyday online services possible: websites, cloud storage, email, streaming, online banking, artificial intelligence, government networks, and business software. A data center provides the essential, physical infrastructure that supports “the cloud.” Despite the useful services they supply, not everyone is convinced. In a recent poll, 14% of Texans “somewhat” opposed new data centers in their community, and a whopping 42% “strongly opposed” their construction. Often people assume that allowing a new data center nearby will ensure their electricity prices increase rapidly. This doesn’t have to be the case. Electricity prices aren’t driven by demand growth alone. Instead, they’re driven by how the grid and infrastructure respond to that growth. Take China, for example: It is experiencing a similar data center boom, but its electricity prices are significantly lower. China doesn’t unnecessarily restrict its supply chains, as we do in the U.S. Additionally, while gullible media and government officials point to China’s development of wind and solar, the Chinese government has fully committed to supplying abundant, cheap electricity for its industrial and commercial needs. That commitment means China now operates the most coal-fired electricity generation on the planet, and its government has approved the construction of more new coal generation than is currently operating in the U.S. In contrast, overregulation hinders American energy from reaching its full potential. A solution to meeting growing demand despite metastasizing regulatory restrictions on American electricity markets is a bring-your-own-energy style policy. These policies can work well in Texas’ energy environment, where, apart from market-distorting subsidies, the energy market is meant to determine what type of energy is cost-effective and reliable. Texas Senate Bill 6 requires data centers using a lot of energy to fund grid connection and infrastructure upgrades, including transmission and distribution studies. Although SB6 doesn’t guarantee that every dollar charged to a data center equates to a dollar of infrastructure for that specific facility, it embraces the right principle of taking meaningful steps to protect ratepayers. In states such as New York, Washington, or Oregon, where zero-emission requirements are abundant, a bring-your-own-energy style policy would serve as an additional cost on developers. But mandates in these states already force data center operators to fund wasteful climate initiatives that distort investment decisions, raise operation costs, and ultimately raise prices for consumers and businesses. It’s reasonable to expect data centers to cover the costs of the generation, transmission, substations, and reliability services they require. However, these businesses (and their investors) should not be viewed as piggy banks for green political agendas. Loading costs onto an industry based on climate initiatives backed by faulty science is a cardinal sin in a free market. Instead, these states would do well in the short-term to focus on expanding electricity supplies with grid-enhancing technologies that could help to provide data centers with the power they need. A Columbia University analysis found that these commercially available technologies can unlock meaningful capacity within months, making them especially useful as data-center electricity demand rises through 2028. Examples include advanced conductors that can nearly double line capacity, and power-flow controls that have already freed 2 gigawatts—approximately 4.4% of Britain’s national peak demand—of additional capacity on Britain’s grid. These technologies move electricity; they unfortunately do not generate it. Deregulation, paired with innovation, is the solution to meeting the data center electricity demand. Faster permitting and local responsiveness, especially around community concerns, are key to data centers being good neighbors and to America winning the AI race. States like Texas can welcome data centers without subsidizing them or eliminating competition. Let companies build, let energy suppliers compete, ensure that large electricity customers pay for the electricity and infrastructure they need to operate, and remove the stringent regulations preventing grid expansion. Doing this will ensure data centers are an asset to Texas and Texans.