National View: Political pushback creating buildability crisis for data centers

Peter Clark, an Arizona-based writer, argues that political pushback against data center construction is creating a "buildability crisis" across the United States. He highlights Maine as the first state to pass a statewide moratorium on mid-sized and larger data center buildouts, driven by concerns over grid strain and environmental impact. Clark contends that this approach addresses a symptom rather than the root cause, which is the slow pace of infrastructure scaling, particularly for the electrical grid. The article details the escalating energy demands of data centers, noting they accounted for 4.4% of U.S. consumption in 2023, with projections to triple by 2028. Northern Virginia, America's largest data hub, is cited as a prime example of electrical infrastructure stress, having experienced a voltage fluctuation in 2024 that disconnected 60 data centers. Clark also discusses challenges in scaling alternative energy sources like nuclear and microgrids due to regulatory and permitting hurdles, and the 10-year average timeline for grid expansion projects. Virginia and Georgia, both significant data center markets, are currently debating policies to manage growth, including disputes over tax exemptions for data centers. Clark criticizes focusing solely on incentives, asserting that attempts to slow development provide only temporary relief. He advocates for streamlining and simplifying the permitting process for grid expansion to ensure the electrical system can support future demand, rather than limiting data center growth.