Questions over foreign influence in data center opposition reach Alabama
The Prichard City Council is considering a data center moratorium amidst local opposition to an Edged Energy project. Federal lawmakers have requested investigations into claims that this opposition, and similar campaigns nationwide, are influenced by foreign-linked organizations aiming to undermine U.S. AI infrastructure development. Meanwhile, Alabama's Public Service Commission is reviewing electricity contracts for large-load data centers to ensure they cover their own costs.
The Prichard City Council is poised to vote on a 480-day moratorium on new data center permits, a decision stemming from months of local opposition, including a 3,000-signature petition, against Edged Energy's proposed $93 million project on Telegraph Road. Federal lawmakers, however, have raised concerns that the opposition campaign in Prichard and at least 13 other states may not be entirely grassroots, requesting federal investigations into alleged foreign influence.
A report titled "The Singham Ground Game" by the Bitcoin Policy Institute, now under review by the FBI, claims that the Party for Socialism and Liberation (PSL), a Marxist organization reportedly tied to a Chinese-funded influence network, has organized opposition to American AI infrastructure projects. The report implicates PSL's Mobile chapter in orchestrating the Prichard project opposition. This network, allegedly built by Shanghai-based tycoon Neville Roy Singham, is reportedly funneling millions to U.S. nonprofits, and Singham himself is the subject of a federal grand jury investigation, with Senator Tom Cotton requesting a DOJ probe into potential Foreign Agents Registration Act violations.
Congressional leaders, including House Energy and Commerce Committee Chairman Brett Guthrie and Rep. Lance Gooden, have urged the FBI and DOJ to investigate foreign efforts, particularly from China and Russia, to impede U.S. AI development. OpenAI also reported banning China-linked ChatGPT accounts engaged in a "Data Center Bandwagon" operation, spreading misinformation about data centers increasing electricity prices – a message that mirrored communications received by Alabama lawmakers. Senators Tommy Tuberville and Katie Britt have defended data center development in Alabama, emphasizing its importance for economic competitiveness and ensuring data centers pay their own electricity costs.
In a related development, the Alabama Public Service Commission (PSC) has initiated a first-of-its-kind review of Alabama Power's contracts with large-load data centers, including those for the Edged Energy project in Prichard and Silicon Ranch's solar projects powering Meta's Montgomery-area data center. This review aims to ensure that data centers bear the full cost of their electricity needs, rather than shifting expenses to existing customers. Public comments on this docket are due by August 6.