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A transitioning Congress finds itself in a pickle on AI data centers

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A transitioning Congress finds itself in a pickle on AI data centers

As Congress returns to Washington this week, the massive power demands of the AI boom have forced a reckoning over data center infrastructure.

The Senate is preparing for a pivotal procedural vote on legislation that would speed approvals for energy projects while requiring large data centers to shoulder more of the costs they impose on the power grid. The bipartisan bill would add much-needed regulations on data centers, but, as some politicians believe, may also encourage more data center construction.

In the sweeping and history-making midterm elections last week, voters didn't just elect a new generation of Democratic lawmakers. They also sent a pretty unmistakable message to Big Tech, particularly the artificial intelligence industry: Enough with the data centers already. Or, more bluntly, "get out of town."

Across the country, local communities are pushing to stop, restrict, or impose conditions on data center development. The election results reinforced that message, making clear that the AI gold rush is facing growing resistance.

For the last two years, Silicon Valley has busied itself building more, building bigger and doing it ASAP. If a tech giant wanted to drop a warehouse-sized data center into a community, local governments often offered tax breaks and other incentives, then told residents it was harmless and would mean more jobs.

Democrats now find themselves in a pickle. Many campaigned on restricting data center development, responding to voters concerned about electricity costs, water consumption, and the impact these enormous facilities have on their communities. 

Now, the aforementioned pending legislation forces a stark about-face — since, as Reuters reports , some Democrats believe provisions in the proposed bill could encourage the creation of more data centers.


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