Fetterman Rejects ‘Overreaction’ to AI and Data Centers, Says China Benefits
Senator John Fetterman rejects concerns about AI and data centers, emphasizing their importance for U.S. national security and competition with China. His comments follow Pennsylvania Governor Josh Shapiro's executive order, which modifies permitting requirements for large data centers and introduces new mandates for electricity, water, and community benefit agreements. The article also details ongoing federal legislative efforts and a state utility commission framework addressing large electricity users.
Senator John Fetterman (D-Pa.) has publicly dismissed what he terms an "overreaction" to artificial intelligence (AI) and data centers, asserting that U.S. leadership in AI and energy is crucial for national security against competition from China. His comments on X, where he stated, "China continues to fuel and benefit from our overreaction," came shortly after Pennsylvania Governor Josh Shapiro, also a Democrat, signed an executive order addressing large data center development in the state.
Governor Shapiro's executive order, known as GRID, introduces significant changes to Pennsylvania's permitting process. It requires data center developers to sign project-specific agreements with the Pennsylvania Department of Environmental Protection (DEP), ensuring they secure enough new electricity capacity and energy for their operations. Additionally, developers must offer community benefit agreements to local and county governments, covering issues such as noise, traffic, air quality, visual impacts, and financial contributions. The order also mandates environmental plans for water demand and efficiency, prohibits nondisclosure agreements for data center projects by state agencies, and requires operating data centers to report their energy and water usage beginning July 1, 2027.
Separately, the Pennsylvania Public Utility Commission (PUC) issued a final model tariff framework in May for large electricity customers, including data centers, addressing infrastructure costs, financial guarantees, and interconnection studies. The White House has also pursued national initiatives, expanding its Ratepayer Protection Pledge in July to encourage data center companies like Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI to pay for new electricity capacity and infrastructure. On the federal legislative front, the bipartisan Ratepayer Protection Act (H.R. 9340) advanced from the House Energy and Commerce Committee, reflecting a broader effort to manage the energy demands of the growing data center sector.