Lawmakers from both parties back data center permitting reform

Lawmakers from both sides of the aisle are expressing support for permitting reform to spur the construction of new data centers, following President Donald Trump’s State of the Union announcement of a Rate Payer Protection Pledge to shift data center energy costs onto tech companies. 

Sen. Ted Budd, R-N.C., and Rep. Jake Auchincloss, D-Mass., spoke during a Washington Post Live event about the key policy actions that need to be taken to ensure the U.S. scales a robust infrastructure suited for artificial intelligence technologies. 

“These hyperscalers that want to put their own energy behind the meter … I have a strong hunch they would be thrilled to do construction labor agreements with unions if they could get the permits now, and if they could get the interconnection queue cleared now to actually build the darn thing,” Auchincloss said.

Budd agreed, saying the country needs more grid space available for the compute volumes that AI demands.

“We need to add about 85 gigawatts a year in order to keep pace with our demand,” Budd said. “I think that goes back to permitting reform.”

While both lawmakers agreed that the country needs more energy infrastructure, they diverged in the type of energy that the U.S. should invest in. Budd supported coal mining, while Auchincloss advocated for incorporating green energy solutions like nuclear, geothermal and offshore wind production. 

Streamlining permitting for data center construction is a key platform for the Trump administration, as outlined in an executive order signed by the president last July. 

Some lawmakers, however, have taken issue with the rush to construct more data centers for AI compute. Sen. Bernie Sanders, I-Vt., called for a moratorium on data center construction on Tuesday, motivated by concerns over land and water use, as well as higher electricity costs. 

“We cannot sit back and allow a handful of billionaire Big Tech oligarchs to make decisions that will reshape our economy, our democracy and the future of humanity,” Sanders said. “We need serious public debate and democratic oversight over this enormously consequential issue.”

Budd said he would need to read the text of Sanders' proposal but doubted he would offer support for the effort.

“I think we need to say: ‘Look, power is good.’ If we're going to compete as a country, we need more energy,” Budd said, noting that state governments may be best positioned to oversee data center construction permitting.

“​​I think you have to make it at a local level,” he added. “You may want an AI moratorium, and [say]: ‘Look, we're not going to do state-by-state laws on restriction of AI nationally.' But I think that when it comes to building of centers that … needs to be made at a local level.”