As Big Tech Aggressively Builds Data Centers, Lack of Guardrails Put Communities and Climate at Risk
WASHINGTON — The aggressive buildout of infrastructure needed to power a surge in computing power for artificial intelligence has propelled an explosion in construction of new data centers, often with little to no protections in place to support the public interest, according to a new policy guide released today by Public Citizen.
As policymakers at all levels of government seek solutions to complicated policy problems created by the need for new data centers, the new guide outlines actionable steps elected officials can take to protect consumers, workers, and the climate from Big Tech.
“We’re watching Big Tech overlords write their own rules in real time,” said Deanna Noël, climate campaigns director with Public Citizens Climate Program. “Tech giants are cutting backroom deals with utilities and government officials to build massive data centers at breakneck speed, while passing the costs onto working families through higher electricity bills, polluted air and water, and false claims about job creation. The widespread use of anti-democratic NDAs should be a flashing red warning sign—Big Tech knows this data center land grab is not in the public interest. At the very moment we must rapidly phase out fossil fuels, the Trump administration is doing the opposite—fast-tracking data center development powered by coal, oil, and gas. Big Tech’s energy-hungry AI expansion is throwing a lifeline to Big Oil, while inflating what many experts warn is a speculative bubble. If the AI bubble bursts, communities could be left with stranded infrastructure and the potential for yet another taxpayer-funded bailout for corporate America.”
Among the recommendations, the guide calls on policymakers to:
- Prohibit, restrict, or temporarily pause new data center development;
- Ensure transparency and accountability standards for potential data center development;
- Commission independent studies to estimate new demand for energy and water usage;
- Repeal or limit tax incentives for data centers;
- Require data centers to use clean, renewable energy and energy efficient technology;
- Protect grid reliability by requiring load flexibility and authorizing forced curtailment; and
- Require local hiring and workforce development commitments.
“This guide is a call to action,” said Noël. “Policymakers at all levels of government must act with urgency to rein in Big Tech’s unchecked expansion. By demanding transparency and accountability, enforcing strong community protections, and requiring clean and cheap renewable energy, policymakers can shield consumers from soaring electricity costs, reduce emissions to protect public health, and align this buildout with the clean energy transition. Without urgent intervention, Big Tech will continue getting a free ride while more neighborhoods are turned into sacrifice zones for Silicon Valley’s tech tycoons—fueled by the fossil fuel industry.”
For a deeper dive into local and state policy interventions to stop or restrict data center development, see The AI Now Institute’s North Star Data Center Policy Toolkit.
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