The War on Data Centers Is Here—and It Doesn't Add Up
US politicians, including Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders, are pushing to pause new data center construction due to concerns over power and water usage. Critics argue that this will hinder AI development and allow authoritarian countries like China to lead in AI innovation.
Data centers, which process data for phones and computers, are facing opposition due to their high power and water usage. Politicians like Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders have introduced a bill to pause new data center construction. Critics argue that this will slow down AI development and allow other countries to take the lead. Paige Lambermont of the Competitive Enterprise Institute says that slowing down data center construction will make the US worse off. The Institute for Energy Research found no statistically significant relationship between data center concentration and electricity rate increases. However, demand for AI is expected to drive up prices due to limited power generation capacity. Government rules limiting the use of efficient fuels like natural gas and nuclear power are part of the problem. Microsoft's deal to reopen the Three Mile Island nuclear reactor is being delayed due to regulatory hurdles.
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