US Commerce Secy warns communities against blocking AI data centres
US Commerce Secretary Howard Lutnick warned American communities, including Orange County, North Carolina, against imposing moratoriums on AI data centers. He argued that such actions, based on misinformation about environmental and economic impact, would lead to lost investment and jobs. His comments followed Orange County's one-year moratorium on large-scale data centers.
US Commerce Secretary Howard Lutnick issued a strong warning to American communities regarding their opposition to artificial intelligence (AI) data center construction. Speaking at a press conference following the G20 Innovation Ministerial in Chapel Hill, North Carolina, Lutnick stated that communities risk losing significant investment, jobs, and tax revenue if they block these developments, which he attributed to "misinformation" about their environmental and economic effects.
The Secretary's remarks were made in response to a reporter noting that Orange County, where the ministerial was held, had recently imposed a one-year moratorium on large-scale data centers. Lutnick argued that by implementing such moratoriums, communities would deter future economic opportunities, as other regions across the United States are actively seeking to attract these projects.
Lutnick further contended that data centers would house advanced AI models, providing communities with access to knowledge and new economic opportunities. He dismissed claims that data centers would necessarily drive up electricity prices or strain local resources, suggesting that companies building these facilities often develop their own power supplies and significantly contribute to the local tax base. He urged technology companies to improve their communication with residents to address concerns about the impact of large AI infrastructure projects.