An opinion piece by Arthur Herman highlights growing concerns over local and state-level moratoriums and bans on new data centers in the United States, warning that these restrictions could jeopardize both the nation's economic future and national security in the context of the ongoing technological competition with China [1]. The article draws a parallel between current opposition to data center expansion and hypothetical wartime obstruction of defense manufacturing, arguing that such actions would ultimately benefit adversaries [1].
According to the article, the U.S. and China together control 90% of global AI compute capacity, with the U.S. holding a dominant 75% share compared to China's 15% [1]. The author asserts that while China has made advances in industrial and military AI applications, the U.S. remains the leader in generative AI and innovation, but this advantage is at risk if data center growth is stifled [1].
The piece cites that 78 local jurisdictions across the U.S. have enacted temporary moratoriums or bans on new data centers, with New York being the only state to implement a statewide construction moratorium. Fourteen other states, including Florida, Oklahoma, and Georgia, are considering similar measures [1]. The potential economic impact is underscored by the example of Georgia, where a ban could threaten 552,000 jobs and $850 million in tax revenue [1].
The article challenges claims made by data center opponents, stating that new data centers would lower electricity costs by increasing sales volume and that many data centers use no water 96% of the time [1]. The author warns that if the movement to ban data centers gains further political traction and temporary bans become permanent, it could undermine U.S. leadership in AI and benefit China [1].
CONCLUSION
The article presents a strongly negative outlook on the impact of data center bans, emphasizing significant risks to U.S. economic growth, job creation, and national security. The author argues that continued restrictions could erode America's AI leadership and provide strategic advantages to China.