Data Centers Are Being Vilified Left and Right. Do They Deserve It? Jake Morabito in Real Clear Energy
"Instead of resorting to sweeping bans, states should follow the ALEC model."
In his new op-ed for Real Clear Energy, Senior Director of Policy Jake Morabito examines the growing debate over data center development and outlines how state-led solutions can address community concerns while supporting the investment needed to sustain America’s growing digital economy.
In a bitterly divided U.S. Congress, the House of Representatives did the unthinkable last month. It passed bipartisan legislation on artificial intelligence, data centers, and who will pay for the energy powering the digital infrastructure of tomorrow.
The Ratepayer Protection Act earned overwhelming support from both Republicans and Democrats on a vote of 417-3, only to be blocked by the U.S. Senate. The legislation would provide meaningful local protections by holding large data centers responsible for the full cost of any electricity generation, transmission, or distribution upgrades necessary to serve their load. This would have fulfilled President Trump’s landmark Ratepayer Protection Pledge and prevented the cost burden from shifting to average households and businesses.
Meanwhile, several states are pursuing a different approach by heavily restricting data center development.
Virginia Governor Abigail Spanberger recently unveiled what she calls “the nation’s most aggressive standards” for data centers over 25 MW, including limits on the use of affordable and reliable natural gas in favor of costly renewables. Pennsylvania Gov. Josh Shapiro recently signed strict standards on “speculative, irresponsible data center projects.” New York Gov. Kathy Hochul signed an expansive one-year moratorium she described as a bold vision to “stop massive data centers that [communities] didn’t ask for.”
Americans are rightly concerned about what artificial intelligence and new data center infrastructure means for their regions, and it’s not a partisan phenomenon. A March 2026 Pew Research Center study found that a plurality of Americans believe that data centers are bad for the environment, raise home energy costs, and worsen quality of life for nearby communities.
But do data center deserve this level of vilification? The issue is much more nuanced than modern political discourse allows.