US Congress Considers Moratorium on Data Center Construction

Representative Alexandria Ocasio-Cortez and Senator Bernie Sanders have introduced a federal bill aimed at pausing new data center construction, citing concerns over the significant electricity and water demands of these facilities, especially with the rise of AI. The article highlights that data centers can consume as much power and water as a small town, prompting activists to oppose projects, with some past incidents involving extreme actions. However, the Competitive Enterprise Institute's Paige Lambermont argues against slowing down development, warning that such measures could cede technological leadership to authoritarian countries like China. She dismisses fears of rising electricity prices, noting that rates in Northern Virginia, a major data center hub, have increased more slowly than in other areas, a finding supported by the Institute for Energy Research. Lambermont attributes potential future price increases to "short-sighted politicians" who have limited efficient fuel sources. The article also touches on regulatory hurdles faced by companies like Microsoft, which has partnered with Constellation Energy to reopen the Three Mile Island nuclear reactor, but faces delays in utilizing its power due to existing utility regulations. It contrasts this with Elon Musk's initiative to power his Tennessee supercomputer off-grid, suggesting that current government rules impede innovation. Some members of Congress are reportedly exploring ways to simplify the process for building independent power sources. The piece concludes with the argument that productive advancements typically occur when government intervention is minimized.