U.S. commerce secretary defends data center construction
U.S. Commerce Secretary Howard Lutnick defended data center construction, addressing concerns about water and power usage. He highlighted the economic benefits data centers bring, such as tax revenue and job creation, and warned communities against implementing moratoriums, stating they would lose out on opportunities.
U.S. Commerce Secretary Howard Lutnick, joined by White House director of Science and Technology Policy Michael Kratsios, delivered remarks in Chapel Hill, North Carolina, on September 2, 2026, where he strongly advocated for the continued construction of data centers.
Lutnick argued that data centers are essential for housing knowledge and fostering prosperity within communities. He countered common criticisms regarding their environmental impact, specifically water and power consumption. The Secretary pointed out that industries like almond farming use significantly more water than data centers. He also suggested that data center developers often build their own power infrastructure, which can lead to lower power costs and substantial tax revenue for local areas.
He cautioned against communities imposing moratoriums on data center development, stating that such actions would merely divert opportunities to other eager communities and states within America. Lutnick predicted that localities that reject data centers would face economic regret in the future.