Allison Schrager: Expect more data center moratoriums — and slower growth
New York has enacted a one-year moratorium on new data centers, reflecting a broader societal 'friction' against rapid technological growth. The article suggests this trend, driven by concerns over environmental impact and electricity prices, will likely spread to other states. This economic friction, while potentially useful in some contexts, ultimately slows economic expansion.
Allison Schrager, a Bloomberg Opinion columnist, writes about New York's recently enacted one-year moratorium on new data centers, framing it as an example of economic 'friction' driven by public fear.
Schrager notes that restrictions on data centers are anticipated to become more common in other states due to concerns about environmental harm and increased electricity prices. While acknowledging that some friction can be beneficial, such as regulations in other sectors, she argues that these types of restrictions on data centers ultimately hinder economic growth.
The author believes that a widespread desire for greater control over technology and a cultural inclination towards friction will likely lead to more moratoriums and regulations. She contrasts this with the potential for AI to eliminate existing frictions and drive exponential economic transformation, concluding that the backlash against data centers indicates a societal preference for slower growth over unbridled innovation.