America's Inaction on AI and Data Centers Poses Economic Risk
This commentary argues that America risks falling behind in AI development by hindering data center growth, citing actions taken by Texas Governor Greg Abbott to increase regulation on data centers and a moratorium in New York. The author, Carrie Sheffield, warns against loss aversion in policy-making, emphasizing the long-term costs of inaction in AI and infrastructure development.
Carrie Sheffield, director of the Center for AI and Technology at Independent Women, published a commentary asserting that America's biggest mistake regarding artificial intelligence would be to stand still, advocating for a choice between "American AI and adversarial AI." She criticizes Texas for potentially hobbling its economic boom, which has been fueled by data centers, by increasing regulations on the industry.
Governor Greg Abbott has directed state regulators to scrutinize data centers, and announced that all new projects will require audits from the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT). Sheffield argues that this tension is also evident nationally, citing President Trump's concerns about a data center moratorium in New York and its potential harm to the state. She warns that focusing solely on the risks of AI, such as concerns over jobs, privacy, water, and electricity, leads to an overreaction that overlooks the greater long-term costs of slowing AI development, especially when adversaries like China continue to advance.
Sheffield highlights that data centers are crucial for the modern economy, supporting everyday services from remote work to online banking. She draws a parallel to America's past handling of nuclear power, where public fear led to a slowdown in development while other nations progressed. The commentary concludes by urging a balanced approach that implements sensible safeguards without stifling innovation, emphasizing the danger of America sabotaging its AI capacity while China accelerates.