Commentary: Expect more data center moratoriums — and slower growth — Allison Schrager
A commentary piece discusses the anticipated increase in data center moratoriums and regulations across the U.S., using New York's one-year moratorium as an example. The author argues that public fears about environmental impact and electricity prices are driving these restrictions, which she characterizes as "friction" that will hinder economic growth. She concludes that such measures create an illusion of control over technology, as development will simply shift to other states.
Allison Schrager, a Bloomberg Opinion columnist, posits that the United States should expect a rise in data center moratoriums and additional regulations. She cites New York's one-year moratorium on new data centers as a prime example of governmental attempts to slow technological advancement, which she attributes to public anxieties concerning environmental damage and escalating electricity costs.
Schrager, an economist, frames these restrictions as economic "friction" that will inevitably impede growth. She contends that while some regulations might be well-intentioned, the notion that a state can effectively control technology's trajectory is largely unfounded. Instead, she suggests that development will simply relocate to other states with fewer restrictions.
Ultimately, Schrager concludes that America's societal inclination towards "friction" and perceived control, even at the expense of higher economic growth, will shape the future of artificial intelligence and data center development. She notes that surveys indicate a majority of Americans favor slowing down AI, illustrating a preference for process and a slower economy.