U.S. Tech Think Tank Criticizes Local Data Center Ban: Could Undermine AI Infrastructure Competitiveness

August 3rd - Robert D. Atkinson, Senior Fellow at the Information Technology and Innovation Foundation (ITIF), published an article criticizing local government policies that restrict data center construction. He argued that such bans could harm tax revenue, employment, clean energy investment, and the development of U.S. AI infrastructure.

Prior to this, Montgomery County, Maryland, passed Expedited Bill 19-26, halting the issuance of new data center construction permits for 18 months, affecting projects already in the approval process. The local government stated that this action aims to protect the Potomac River, alleviate residential electricity price hikes, and provide time for a more sustainable development plan.

Atkinson stated that a blanket suspension of data center construction would not effectively address environmental issues, as many related impacts could be addressed through existing regulatory mechanisms. He pointed out that new cooling technologies have reduced the water usage of some data centers, and local governments should evaluate projects based on water usage, power needs, and wastewater treatment capacity rather than implementing a blanket approval freeze.

He also argued that attributing electricity price hikes and energy consumption solely to data centers is inaccurate. Data center developers have committed to covering the additional electricity costs to prevent cost shifting to residents, and energy price fluctuations are more influenced by factors such as fuel costs.

In terms of economic impact, Atkinson warned that the moratorium could lead to investment, tax revenue, and job opportunities being lost. For example, the $1.4 billion Atmosphere Data Centers project located in the area is projected to contribute approximately $758 million in tax revenue to Montgomery County over the next 15 years, but it is currently delayed.

He stated that data centers not only create construction and operation jobs but also expand the local tax base to support education, public safety, and infrastructure. Against the backdrop of rapid AI infrastructure development, local restrictive measures could weaken the U.S.'s competitive advantage in the field of artificial intelligence.