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Lawmakers push back on data center energy demand tied to AI buildout
Energy-price pressure from large data center projects is also sparking concerns that a plan for tech firms to build dedicated power could create a “shadow grid” with less oversight.
Representatives from both political parties are increasingly pushing back on hyperscalers developing large data center campuses on local energy grids, arguing the projects are driving up electricity demand and worsening energy costs for consumers, according to OilPrice.
The Trump administration has sought to address the issue by encouraging the tech sector to supply its own power for expanding data centers, effectively shifting responsibility for parts of the energy buildout toward the companies driving the load growth, the outlet said.
OilPrice also flags concerns raised in a recent op-ed by Semafor’s energy editor, who argues the approach envisions a parallel, bespoke power system built alongside the existing grid.
The article warns that letting Big Tech build dedicated energy infrastructure could result in unintended consequences, including reduced regulatory oversight compared with traditional electricity grid governance, such as compliance and environmental protections.