Trump official: Seattle data center ban a huge mistake
Seattle is proposing a one-year moratorium on new AI data centers due to concerns about energy demand. A Trump administration energy official criticized the plan, calling it a mistake that would sacrifice jobs, tax revenue, and national security, despite companies pledging to cover power costs.
The Seattle City Council is advancing a proposed one-year moratorium on new AI data centers, a move supported by Mayor Katie Wilson due to concerns over energy demand. Four companies have proposed facilities that would collectively draw 369 megawatts from Seattle City Light, representing about a third of the city's daily power load, raising fears among opponents about increased costs for ratepayers. However, the Trump administration previously addressed these concerns in March, with companies like Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI signing a Ratepayer Protection Pledge at the White House. This pledge committed them to fund their own power requirements and grid upgrades.
Despite these commitments, Seattle is proceeding with the moratorium. Alex Fitzsimmons, the acting Undersecretary of Energy and Director of the Office of Cybersecurity, Energy Security, and Emergency Response, voiced strong opposition to the city's decision on The Jason Rantz Show. Fitzsimmons argued that Seattle is making a mistake, overlooking the long-term benefits of data centers, including job creation, significant tax revenue that could eliminate property taxes in some communities, and investments in local infrastructure like schools and roads. He also emphasized the national security implications, stressing the importance of building data centers within the United States to maintain technological sovereignty and protect private data.
Fitzsimmons suggested that political motivations might be influencing Seattle's stance, pointing out that Washington Democrats had already passed legislation earlier in the year to shift grid costs onto data center operators. He warned that if cities like Seattle block construction, data center development could move to other locations, potentially outside the US, undermining national security and economic goals. The official also highlighted that Seattle City Light and Puget Sound Energy are already facing challenges like staffing shortages, infrastructure gaps, and planned rate hikes, issues that predate data center proposals.