Expect more data center moratoriums and slower growth
A commentary piece suggests that more data center moratoriums and regulations are to be expected across the US, citing New York's one-year moratorium as an example. The author argues that these restrictions, driven by fears over environmental impact and electricity prices, represent "friction" that will ultimately slow economic growth. This trend reflects a societal preference for control over rapid technological progress.
The article, a Bloomberg Opinion commentary by Allison Schrager, predicts an increase in data center moratoriums and other regulations across the United States, similar to New York's one-year moratorium on new data centers. Schrager, an economist, views these restrictions as "friction" that will inevitably slow economic growth, driven by public fears regarding environmental harm and rising electricity prices. While acknowledging some value in societal friction, she argues that its proliferation often impedes progress, especially in managing rapidly advancing technologies like AI.
Schrager contends that despite technology's potential to eliminate existing frictions, American society and its economy tend to embrace more friction, as evidenced by a survey indicating 80% of Americans desire a slower pace for AI development. She concludes that this preference for "control" through regulation over unbridled growth will likely lead to a future with more regulatory hurdles for industries like data centers, impacting overall economic expansion.