WASHINGTON, D.C. — Artificial intelligence is changing the way Americans work, communicate and do business. But behind every AI prompt is a massive physical infrastructure: data centers.
Artificial intelligence may feel invisible, but powering it is anything but. Data centers packed with computer servers are multiplying as demand for artificial intelligence surges.
“You’re looking at a 33% increase year over year,” said Chris Ciabarra, co-founder and CEO of Athena Security, a company working to implement its AI-driven physical security systems nationwide.
“It’s going to keep going, obviously, because AI is getting more and more popular,” Ciabarra added about the increase in data center demand.
That growth comes with an enormous appetite for electricity — along with land and, often, water for cooling. The demand is fueling a national debate: economic opportunity versus the cost to local communities.
“There’s going to be pushback. Why? Because they’re going to take up a lot of your power. They’re going to build more power plants. They’re going to have to do things that you didn’t have to do before. And who’s paying for that?” said Ciabarra.
President Trump’s Ratepayer Protection Pledge calls for protecting consumers from data center-driven rate increases. But making those protections enforceable falls largely to states, utility regulators and local officials.
Supporters for data centers point to construction, investments and potentially family-sustaining jobs. But Ciabarra said the biggest boost to a community probably won’t come in the form of new jobs.
“Because during construction and building, sure, they’re going to do probably around 1,500 jobs,” said Ciabarra. “But once the construction is over, you could probably drop down to a 10th of that, or less, in permanent jobs.”
Ciabarra believes local officials and lawmakers should be exploring ways to ultimately tax larger data center power usage. The most practical way to do that, he said, is to federally regulate electricity — which was deregulated by the federal government decades ago.
“They deregulated the electricity. And I think they need to put that back into the federal government and regulate that at the federal level and then be able to say, ‘Okay, companies are allowed this much megawatts. And if you go over that megawatts, you’ve got to start paying more.’ And that money goes to the locals,” Ciabarra said.
Many federal lawmakers believe locals should have the final say.
“Number one, the community, homeowners, landowners come first. End of story,” said Rep. Dan Meuser, R-Pa.
Congressman Meuser believes if locals choose to give the green light, it could provide a once-in-a-generation opportunity.
“Minimization, if not elimination of property taxes in some areas, building fire departments, schools, the whole deal,” said Meuser. “It’s something that needs very serious consideration.”
“We’re in an interesting position. There’s not too many other states like us,” said Rep. Mike Kelly, R-Pa.
Kelly’s district in northwest Pennsylvania is being eyed for two proposed data centers so far. He said the projects have yet to break ground.
“And I don’t think they will until they see, is there firm support for this or is there not,” said Kelly. “So we’ll see what happens there. But this is the future.”
