Building Data Centers Right
Infrastructure for the future economy is being built, but not in states controlled by the Democratic Party. Gov. Josh Shapiro (D-PA) joined Gov. Kathy Hochul (D-NY) this week in banning new data center construction. They join Democratic governors in 10 other states that have passed legislation or signed executive orders making it harder for investors to create jobs and develop new power generation in their state.
TL;DR
- Democratic governors in states like Pennsylvania and New York are banning new data center construction, while Republican-led states like Indiana, Louisiana, Texas, and Utah are fostering job growth and energy grid improvements through data centers.
- A major AI computing project, PORTS-Pike, in Ohio is set to create 35,000 construction jobs and 2,500 permanent jobs, with the developer covering $4.2 billion in new transmission infrastructure costs and using water-efficient cooling systems.
- Public opinion shows concern over data centers impacting electricity prices and local resources, but also a preference for traditional job-creating facilities over AI data centers.
- Some Democratic politicians, like Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez, are calling for nationwide moratoriums on new AI data centers, citing potential negative impacts on working-class people and the environment.
- Responsible management of data center projects, as demonstrated in Ohio, can ensure developers bear infrastructure costs and address environmental concerns, leading to economic benefits like job creation and increased tax revenue, as seen in Texas, Oregon, and North Dakota.