Tag: community impact

  • Powering the AI Revolution

    Why America’s Data Center Future Depends on the Electrical Grid

    America’s race to lead the artificial intelligence revolution will not be won by semiconductor technology and investment alone. It will also depend on where data centers are built, whether the electrical grid can deliver the power they need, and whether communities trust the decisions being made in their backyards.

    Artificial intelligence is rapidly becoming one of the most important technologies shaping America’s economic and national security future. Companies are investing billions of dollars in advanced computing infrastructure, developing increasingly powerful AI models, and building enormous data center campuses to support the next generation of artificial intelligence.

    But there is a fundamental problem that deserves much more attention: AI cannot scale without electricity, and electricity cannot be delivered without adequate infrastructure.

    The United States may have world-leading technology companies, advanced semiconductor manufacturers, and enormous investment capital. However, none of these advantages guarantees that the country can build and operate enough AI data centers to maintain its competitive position.

    The challenge is increasingly about energy availability, grid location, transmission infrastructure, and reliability.

    As we discussed in our recent article, America Won’t Lose the AI Race to China’s Chips. It Will Lose It to Distrust, America’s ability to lead in artificial intelligence will depend on more than technological innovation. It will also depend on whether the country can build the physical infrastructure required to support that innovation while maintaining public confidence.

    The AI Infrastructure Problem Starts With Electricity

    Modern AI data centers are fundamentally different from traditional commercial buildings.

    They house thousands of specialized processors, high-performance networking equipment, advanced cooling systems, and supporting infrastructure. These systems require substantial amounts of electricity, often operating continuously to train AI models and deliver computing services.

    As AI adoption expands, so does the demand for computing capacity. That creates a corresponding demand for electricity.

    The challenge is that electrical infrastructure cannot necessarily expand as quickly as technology investment.

    A technology company can announce a multibillion-dollar data center project, acquire land, order computing equipment, and begin construction. But if the local electrical grid cannot provide the required power, the project may experience significant delays before it can become operational.

    This creates a new reality for data center developers: securing electricity must happen before construction decisions are finalized, not after the buildings are completed.

    The availability of power should be one of the first considerations in determining where America’s next generation of AI infrastructure is built.

    Grid Location: Building Where Electricity Is Available

    Historically, data center developers have considered land prices, tax incentives, fiber connectivity, proximity to major markets, and access to skilled labor when selecting locations.

    Those factors remain important, but electricity availability is becoming an increasingly important consideration.

    A site may offer inexpensive land and favorable development incentives but still be unsuitable for a large AI data center if the surrounding electrical infrastructure cannot support its requirements.

    Developers must evaluate several factors before selecting a location:

    • Existing generation capacity: Is sufficient electricity available within the regional power system?
    • Substation capacity: Can nearby substations accommodate the additional electrical load?
    • Transmission access: Can electricity be delivered to the property without major infrastructure limitations?
    • Grid congestion: Are existing transmission and distribution systems already constrained?
    • Future expansion: Can the location support additional computing capacity as AI requirements increase?

    The distinction between national electricity generation and locally available electricity is particularly important.

    China has substantially more total electricity-generation capacity than the United States. However, national generation capacity does not automatically mean that electricity is available at every location where a data center might be constructed.

    The same applies to the United States.

    Having sufficient electricity somewhere within a country does not mean that the power can be delivered economically and reliably to a particular data center campus.

    This is why grid location should become a primary consideration in national AI infrastructure planning.

    Transmission Infrastructure: The Bottleneck Between Power Generation and Computing

    Electricity generation is only one part of the equation.

    Power must travel through transmission lines, substations, transformers, and distribution networks before reaching the facilities that consume it.

    These systems require significant investment, careful engineering, regulatory coordination, and time to construct.

    For AI data center developers, transmission infrastructure can become one of the biggest obstacles to completing a project.

    Even when electricity generation is available, existing infrastructure may not have sufficient capacity to deliver the required power.

    Addressing these limitations may require:

    • New high-voltage transmission lines.
    • Substation construction and expansion.
    • Additional transformers and electrical equipment.
    • Improvements to local distribution networks.
    • Coordination between utilities, developers, and regional grid operators.
    • Long-term planning for additional electrical demand.

    These are not minor construction details. They are essential components of the infrastructure supporting America’s AI economy.

    The federal government, state governments, utilities, and private developers must coordinate their efforts to ensure that electrical infrastructure keeps pace with computing demand.

    This is also where the proposed Department of Technology could play an important role.

    As outlined in our article, How Our Proposed Department of Technology Could Supercharge the Stargate Project, large-scale AI infrastructure initiatives require coordination across federal, state, and local governments.

    Energy planning should be part of that coordination.

    Reliability: AI Data Centers Cannot Operate on Uncertain Electricity

    Having access to electricity is not enough. AI data centers also need reliable electricity.

    AI training and inference workloads can involve thousands of processors operating simultaneously. An unexpected interruption in power can disrupt computing operations, interrupt services, and create expensive recovery requirements.

    For companies investing billions of dollars in computing infrastructure, electrical reliability is a business-critical issue.

    Data center developers must consider the resilience of the entire electrical system, including:

    Grid redundancy: Multiple electrical supply paths can reduce the risk associated with individual transmission failures.

    Backup generation: On-site generators can provide emergency electricity when utility service is interrupted.

    Battery energy storage: Batteries can help manage peak demand, provide short-duration backup power, and support grid stability.

    Uninterruptible power supplies: UPS systems provide immediate protection for critical computing equipment during electrical disturbances.

    Microgrids: Properly designed microgrids can integrate utility electricity, on-site generation, and energy storage to improve operational resilience.

    These technologies should be considered part of the original development strategy rather than expensive additions after a project experiences electrical limitations.

    Reliability also has implications beyond individual facilities. Large data center developments must be evaluated in the context of the surrounding electrical system and the communities that depend on it.

    A project should not simply secure enough electricity to operate its own equipment. Its development should also account for the impact of additional demand on the regional power system.

    Energy Storage and Renewable Energy Must Be Part of the Solution

    Expanding electricity generation and transmission will be essential, but the United States should also consider how energy storage and distributed generation can support future AI infrastructure.

    Solar, wind, nuclear energy, natural gas generation, and battery storage can all play different roles in meeting electricity demand.

    The challenge is developing an energy strategy that balances availability, affordability, reliability, and environmental considerations.

    Energy storage deserves particular attention.

    Our proposal for California’s NEM 4.0 emphasizes the importance of battery storage in supporting grid stability, improving energy management, and helping balance electricity supply and demand.

    The same broader principle applies to AI infrastructure.

    Battery systems can help facilities manage periods of peak demand, provide short-duration backup power, and potentially participate in programs that support the electrical grid.

    However, batteries are not a substitute for adequate generation and transmission capacity. They are one component of a larger energy infrastructure strategy.

    The United States should pursue a diversified approach that combines reliable generation, modern transmission networks, energy storage, and responsible demand management.

    The Cost of AI Infrastructure Should Not Be Shifted to Local Communities

    There is another issue that cannot be ignored: who pays for the electricity infrastructure required to support the AI industry?

    New data centers can require substantial investments in electrical infrastructure. Utilities may need to upgrade substations, expand transmission networks, and improve local distribution systems.

    Those investments raise important questions about how costs are allocated.

    If infrastructure upgrades primarily benefit a private data center developer, should ordinary electricity customers bear the financial burden?

    How should utilities account for the additional demand when determining electricity rates?

    What protections should exist to prevent households and small businesses from subsidizing infrastructure built primarily to support large technology companies?

    These questions deserve transparent answers before major development agreements are finalized.

    The public should not be expected to accept higher electricity bills without understanding why those costs are increasing and who is responsible for paying for the infrastructure.

    This is one reason public opposition to data center development should not be dismissed as simple resistance to technological progress.

    As we discussed in our recent analysis of America’s AI infrastructure expansion, communities have legitimate concerns about electricity costs, water consumption, land use, and the lack of transparency surrounding some development agreements.

    A successful AI infrastructure strategy must address these concerns rather than treating them as obstacles to be overcome.

    Public Trust Is an Infrastructure Requirement

    Data center construction is often presented as a private-sector investment that brings jobs, economic development, and technological innovation to a community.

    But these projects can also place significant demands on local infrastructure and resources.

    Residents deserve to know how much electricity a proposed facility expects to consume, whether new transmission infrastructure will be required, how water resources will be affected, and whether existing utility customers could experience additional costs.

    They should also have meaningful opportunities to participate in decisions before projects are approved.

    This is particularly important when government officials negotiate development agreements behind nondisclosure agreements or make decisions without sufficient public input.

    Transparency is not simply a political preference. It is an important part of successful infrastructure development.

    Projects that fail to earn public confidence can encounter opposition, legal challenges, delayed approvals, and even rejection at the ballot box.

    The United States cannot afford to treat public trust as an afterthought while attempting to build the infrastructure necessary for its AI future.

    A Department of Technology Could Help Coordinate America’s AI Infrastructure

    The growing relationship between artificial intelligence, electricity, and national competitiveness highlights the need for more coordinated technology governance.

    Today, decisions involving AI infrastructure can span multiple federal agencies, state regulators, county governments, municipalities, utilities, and private companies.

    Each organization has different responsibilities, priorities, and regulatory requirements.

    The result can be fragmented planning, inconsistent policies, delayed infrastructure investments, and insufficient public accountability.

    The proposed Department of Technology offers a framework for addressing some of these coordination challenges.

    A federal Secretary of Technology could help coordinate national AI infrastructure priorities, cybersecurity standards, and long-term technology planning.

    State technology leaders could work with utilities, regulators, and regional stakeholders to identify electrical infrastructure needs and coordinate development priorities.

    County and municipal technology leaders could help ensure that local communities have access to relevant information and meaningful opportunities to participate in decisions affecting their infrastructure.

    This approach would not replace the responsibilities of existing utility regulators or energy agencies. Instead, it would provide an additional framework for coordinating technology development with the infrastructure required to support it.

    The goal should be straightforward: make it easier to build the infrastructure America needs while ensuring that development remains transparent, accountable, and beneficial to the public.

    Conclusion: America’s AI Future Depends on Its Ability to Deliver Power

    The competition to lead artificial intelligence is increasingly becoming a competition to build the physical infrastructure that makes advanced computing possible.

    Semiconductors, software, research, and investment remain essential. But they cannot compensate for insufficient electrical generation, inadequate transmission infrastructure, or unreliable power delivery.

    Grid location determines whether a data center can access the electricity it needs.

    Transmission infrastructure determines whether that electricity can reach the facility.

    Reliability determines whether the facility can operate consistently.

    And public trust determines whether communities and governments will support the continued expansion of this infrastructure.

    China’s substantial electricity-generation capacity demonstrates the importance of energy resources in the global AI competition. The United States must recognize that technological leadership requires a comparable commitment to modernizing and expanding its electrical infrastructure.

    But building more data centers should not be the only objective.

    America must build them intelligently, locate them responsibly, strengthen the electrical grid, protect consumers from unfair infrastructure costs, and ensure that communities have a voice in decisions that affect their future.

    The AI revolution will run on electricity. The countries that can generate it, transmit it, deliver it reliably, and earn public support for the infrastructure behind it will have a significant advantage in the decades ahead.

    America’s next great technology investment may not be another semiconductor fabrication facility or AI research laboratory. It may be the electrical infrastructure that makes all of them possible.

    Department of Technology believes that technological leadership and public accountability must advance together. Building the infrastructure of tomorrow requires more than private investment. It requires coordinated planning, reliable energy, and public trust.

  • Introducing Our New Data Centers Series

    Building the Infrastructure for the MI Era

    The future of Machine Intelligence will not be built on algorithms and chips alone. It will depend on where we build, how we power, and whether we build the infrastructure responsibly.

    We are entering a new technological age. Artificial intelligence is moving rapidly from research labs and specialized applications into nearly every part of our economy and daily lives. We often call this the AI era. But at Department of Technology, we believe a broader term better describes what is unfolding: the MI era—the Machine Intelligence era.

    This is more than a change in terminology. It reflects the scale of the transformation underway. Intelligent machines, increasingly capable computing systems, and the networks connecting them are becoming foundational infrastructure for business, science, education, national security, healthcare, and public services.

    But there is a critical reality that can get lost in the excitement over new models, faster chips, and extraordinary software: Machine Intelligence requires physical infrastructure.

    It requires data centers—large, sophisticated facilities filled with computing equipment that must operate continuously. Those facilities require enormous amounts of electricity, dependable transmission lines, cooling systems, water or other cooling resources, communications networks, skilled workers, secure sites, and communities willing to host them.

    Building this infrastructure will be one of the defining challenges of the MI era.

    That is why we are launching a dedicated Data Centers series.

    The questions America and the world must answer

    We intend to examine the data center challenge through the essential questions that should guide every major infrastructure decision:

    • Who is building these facilities, financing them, operating them, regulating them, and benefiting from them? Who is responsible when costs or consequences fall on local communities?
    • What should a modern data center include—not only in computing capacity, but in power systems, cooling, cybersecurity, physical security, resilience, and environmental performance?
    • When should facilities be built, and how should construction be coordinated with the availability of electricity, transmission capacity, equipment, workers, and other essential resources?
    • Where should data centers be located? Proximity to users and fiber networks matters, but so do available power, transmission access, land, water, climate, permitting, and the needs of surrounding communities.
    • Why are these facilities necessary, what public and economic value can they create, and how do we distinguish essential infrastructure investment from projects that shift costs and risks onto others?
    • How can we build, connect, operate, and expand data centers reliably, affordably, securely, and responsibly?

    These questions are connected. A site that looks attractive because land is available may not have sufficient electrical capacity. A region with abundant generation may lack the transmission infrastructure to deliver power where it is needed. A project that makes sense on paper may encounter public opposition if residents are not given clear information about electricity costs, water use, construction impacts, and long-term commitments.

    There is no single answer that works everywhere. The right approach will depend on local conditions, technology, energy resources, infrastructure, and community priorities.

    The electric grid is part of the AI story

    One of the central themes of this series will be the relationship between data centers and the electrical grid.

    The MI era cannot advance at the speed of software if the infrastructure supplying its electricity cannot keep pace. Generation capacity, transmission lines, substations, interconnection processes, energy storage, backup systems, and grid reliability all matter.

    We must look beyond whether enough electricity exists in the abstract. We must ask whether it can be delivered to the right location, at the right time, at a predictable cost, and with the reliability that modern computing demands.

    We must also examine how new demand affects existing customers. Data center development should not automatically mean higher electricity bills, strained local infrastructure, or reduced reliability for households and established businesses. The costs and benefits must be understood, disclosed, and fairly allocated.

    Building with communities, not simply in them

    Technology leadership cannot be measured only by the number of facilities announced, the amount of capital invested, or the computing capacity installed.

    It must also be measured by whether projects are responsibly planned, whether communities have meaningful information and a voice in decisions, whether infrastructure costs are fairly assigned, and whether the benefits extend beyond the companies operating the facilities.

    Public trust is not an afterthought. It is part of the infrastructure.

    That means transparency about power requirements, water and cooling strategies, environmental impacts, tax arrangements, utility investments, and emergency planning. It means recognizing that communities are not merely locations on a map. They are partners whose long-term interests deserve consideration.

    A practical guide to the infrastructure of the MI era

    In this series, we will explore the data center ecosystem from the ground up: site selection, electricity generation, transmission and distribution, grid connections, cooling, water, energy storage, renewable and other energy sources, reliability, cybersecurity, construction, financing, regulation, workforce development, and the relationship between technology companies and the communities that host their facilities.

    We will look at the roles of federal, state, and local governments, utilities, developers, technology companies, investors, engineers, regulators, and residents. We will examine emerging solutions as well as the obstacles that could slow development or undermine public confidence.

    Our goal is not to advocate for building every proposed data center, nor to oppose development simply because it is large or energy-intensive. Our goal is to help readers understand what responsible development requires—and what questions should be asked before decisions are made.

    America’s ability to lead in Machine Intelligence will depend on more than inventing the next generation of chips and software. It will depend on whether we can build the power systems, networks, facilities, policies, and public partnerships that allow those technologies to operate at scale.

    The MI era needs more than computing power. It needs a plan for the infrastructure that makes computing power possible.

    That is what this series is about.

    Our Data Centers Series

    Where we build, how we power, and whether we build the infrastructure for Machine Intelligence responsibly.

    Introducing Our New Data Centers Series

    Machine Intelligence needs physical infrastructure. Our new Data Centers series asks who builds, finances, powers, and regulates data centers, where they belong, and how local communities can truly benefit. Learn what responsible development requires, from electricity, cooling, and site selection to water use, sustainability, security, workforce needs, and public trust in the Machine Intelligence era.

    Read the introduction →

    Ten Questions Every Candidate and Elected Official Should Answer About Data Centers and AI

    Voters deserve clear, specific answers about who pays for data centers, who is accountable, and what happens if AI does not deliver. This nonpartisan scorecard gives voters, reporters, and candidates ten questions for any office, with evidence, signs of strong and evasive answers, a simple scoring guide, and a print-ready list to send to everyone.

    Read article →

    What Every County Treasurer Should Model Before AI Layoffs

    AI could shrink the labor income that funds local government, while data center revenue can concentrate budgets in one fragile industry. This guide shows county treasurers how to build a simple, practical scenario worksheet: map revenue, run displacement and bust scenarios, set reserves and triggers, and publish the results before layoffs or valuation drops arrive.

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    A Technology Leader’s First Year: A Guide for Counties and Cities

    Counties and cities are approving data centers faster than they can possibly study them. This first-year guide for local technology leaders covers what to do each quarter: ending by-right approvals, writing water, noise, and decommissioning rules, joining utility rate proceedings, negotiating community benefit agreements, ending secret deals, and preparing the budget for what comes next.

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    Preemption Without an Owner: Why the Federal-State AI Fight Needs Someone Accountable

    Washington is fighting over whether federal law should override state AI rules. Both sides have real arguments. But whoever wins, someone must enforce the result and answer to voters. This analysis lays out the strongest case for and against preemption, what the record actually shows, and three simple tests any national AI standard should meet.

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    A Briefing for the New Congress: What the Last Two Years Got Wrong, and What to Do Differently

    The last Congress agreed on almost nothing about AI policy, then watched its one bipartisan data center bill pass the House 417-3 and stall in the Senate. This briefing for new members explains five costly mistakes to avoid, from back-door preemption to election-year gamesmanship, and what a single accountable technology office could realistically do differently.

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    How a Data Center Deal Actually Gets Made, and Where the Public Gets Left Out

    From shell companies and code names to secret NDAs and quiet utility requests, most data center deals are usually shaped long before residents hear a word. This step-by-step guide shows how a typical deal gets made, who decides at each stage, where the public is shut out, and what an accountable technology leader would change.

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    The First 100 Days: A Technology Agenda for the Next Congress

    A new Congress has 100 days to govern the technology buildout instead of reacting to it. This practical agenda for members of both parties covers ratepayer protection, ending secret data center deals, preparing for AI’s impact on federal revenue, and creating a single point of accountability, with the evidence and key objections behind each step.

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    The Data Center Casino: Why America Needs Elected Technology Leaders Now

    America needs more data centers, but both parties have treated them like a casino: chasing tax breaks and investment while ignoring grid strain, bubble risk, China’s power advantage, and AI job losses that threaten the tax base. See why elected technology leaders at every level are needed right now to build smarter, safer, and fairer.

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    Voters Didn’t Reject AI. They Rejected Building It Backward

    Voters didn’t reject AI. They rejected building it backward. After 40 of 41 data center ballot measures favored limits on November 3rd, see how rising power bills, strained grids, and secret deals fueled the backlash, how China’s energy buildout compares, and what transparent, accountable planning could do to restore public trust in America’s AI future.

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    Powering the AI Revolution

    Discover why America’s AI data center future depends on a reliable electrical grid. Explore how data center location, electricity generation, transmission infrastructure, grid capacity, energy storage, backup power, and renewable energy shape the next generation of AI infrastructure. Learn why reliable electricity, responsible planning, and community impact are essential to powering the Machine Intelligence era.

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    An Open Letter to Every Elected Official in America: Put the Country First

    An open letter urging Democrats, Republicans, and every elected official to start a nationwide public discussion on creating a Department of Technology at the local, county, state, and federal levels. Learn why AI data centers, secret NDAs, and conflicts of interest demand accountable, nonpartisan technology leadership before the next major data center contracts are signed.

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    America Won’t Lose the AI Race to China’s Chips. It Will Lose It to Distrust.

    America won’t lose the AI race to China’s chips. It will lose it to distrust. After nearly 40 data center ballot measures in 2026, voters are demanding transparency, accountability, and reliable, affordable power. Learn how conflicts of interest, grid limits, and secret deals threaten U.S. AI leadership, and what a Department of Technology could change.

    Read article →
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