Concerns Raised Over Data Center Restrictions and National Security

<p>Americans' sensitive information could increasingly be processed overseas if restrictions on artificial intelligence data centers slow construction in the U.S., according to Brittany Kaiser, CEO of Alpha Compute, and a data privacy advocate.</p><p>This warning comes as states and local governments consider new restrictions on the data center industry amid concerns over electricity costs, grid reliability, and other impacts on surrounding communities.</p><p>Kaiser stated that state moratoriums and restrictions on new data centers could lead American companies to seek computing capacity in other countries as demand for AI continues to rise. "One of my top concerns as a data protection and privacy advocate is that with data center moratoriums being passed in the United States, it will force Americans and American companies to send our data to be processed abroad in other countries," Kaiser said.</p><p>She added, "American companies are going to still run their AI. They're still going to be purchasing data center space in other countries, and it means our sensitive information will be sent abroad and shared with companies and organizations that might not have America's best interests at heart."</p><p>Data centers are large facilities filled with servers and computing equipment that process, store, and transmit information behind many everyday technologies. They support various services, including email, social media, online banking, streaming services, and AI platforms. As demand for AI grows, companies are building increasingly powerful data centers that require significant amounts of electricity, advanced chips, and high-speed network connections.</p><p>Kaiser emphasized that these facilities have become critical infrastructure for the digital economy, making decisions about their location and data control a matter of economic and national security concern.</p><p>Artificial intelligence requires substantially more computing power, which is driving rapid data center construction across the country. This growth has led to pushback in some communities over concerns about electricity costs, water consumption, noise, and environmental impacts. Kaiser acknowledged these concerns and stated that companies should be subject to "common sense regulation" designed to protect communities.</p><p>She noted that responsible developments can use closed-loop water cooling systems and generate power independently, rather than increasing demand on the existing electrical grid. Alpha Compute is pursuing projects designed to operate "off-grid, behind the meter," meaning the facilities would generate their own power instead of relying on local electricity supplies. This approach aims to prevent the energy demands of data centers from straining existing infrastructure or raising electricity costs for nearby residents.</p><p>The company is developing a project in Pennsylvania, where Governor Josh Shapiro recently imposed new requirements on large data center developments. Kaiser stated that Alpha Compute plans to comply with the regulations and welcomes provisions promoting cleaner energy.</p><p>Pennsylvania is among a growing number of states addressing the rapid expansion of data centers. In Texas, Governor Greg Abbott has urged data centers to provide more of their own power and shoulder infrastructure costs as development accelerates. Other governors, including New York's Kathy Hochul, have imposed moratoriums on new hyperscale data centers due to concerns over electricity costs and grid reliability.</p><p>Kaiser cautioned that policies that significantly restrict domestic development could have broader consequences for America's position in the global AI race. She compared the need for domestic computing infrastructure to energy independence, stating, "Compute power has now become nearly a utility."</p><p>"We want to have the right to compute," she said. "We want to be able to process data within our own borders as a national security priority, but also for our own intellectual property to ensure we're not sending our data abroad." Kaiser has launched a campaign called "Right to Compute," advocating for domestic data center development alongside sustainability standards and regulation. "We should have the right to both energy independence as well as compute power," she said, "so that Americans and American companies can process all of our sensitive data within our own borders."</p>