US Lawmakers Propose Pause on Data Center Construction

Columnist John Stossel examines the escalating debate surrounding the rapid expansion of data centers across the United States, particularly driven by the increasing demands of artificial intelligence. The article highlights growing public and political opposition, citing concerns over data centers' significant consumption of electricity and water, with some facilities reportedly using as much as a small town. This opposition has manifested in protests, which reportedly blocked or stalled 48 projects last year, and even extreme incidents like an attack on an Indiana politician's home. In response to these concerns, Representatives Alexandria Ocasio-Cortez and Bernie Sanders have introduced a bill aimed at pausing new data center construction. However, critics like Paige Lambermont of the Competitive Enterprise Institute argue that such measures would impede economic progress and cede technological leadership to other nations, such as China, particularly in AI development. Lambermont also challenges the notion that data centers significantly raise electricity prices, pointing to studies that show no statistical correlation and noting slower price increases in Northern Virginia despite its high data center concentration. The article further criticizes government regulations and utility monopolies for limiting efficient energy sources like natural gas and nuclear power, which could provide needed grid capacity. It cites Microsoft's experience, where a deal with Constellation Energy to reopen the Three Mile Island nuclear reactor is hampered by government rules preventing Microsoft from immediately using the power. Stossel suggests that easing regulations for companies to build their own off-grid power solutions, as Elon Musk did for his Tennessee supercomputer, could foster innovation and address energy demands more effectively.