AI giants bring their energy pleas to Congress

Politico

09-05-2025

Tech giants are urging lawmakers to speed up the permitting process for large data centers — a move that could have major implications for the nation's electricity mix, public lands and sensitive ecosystems.
Since President Donald Trump was elected, he's made it clear the government won't stand in the way of the tech industry's drive to dominate artificial intelligence. The hundreds of billions of dollars that technology companies say they plan to spend to build gargantuan data centers could transform America's energy mix and substantially increase the power sector's climate pollution.
OpenAI and cloud-computing giants such as Meta, Alphabet, Microsoft and Amazon are proposing sprawling campuses. If built, some of those projects could consume as much power as medium-sized cities.
This week, they brought that case to Congress.
OpenAI co-founder Sam Altman and other top tech executives told a Senate committee on Thursday that electricity, permitting bottlenecks and labor shortages are holding back the U.S. build-out of data centers, writes Christa Marshall.
For electric grid managers and experts on U.S. carbon dioxide emissions, concerns have been mounting for months that a rapid expansion of electricity demand through 2030 could destabilize the grid and lead to a dramatic increase in planet-warming pollution.
The truth is 'we know too little,' said Sen. Ed Markey (D-Mass.) at the hearing.
'Manhattan Project of our time'
Shortly after his inauguration, Trump issued an executive order rescinding the restrictions that former President Joe Biden had placed on artificial intelligence. Trump committed to backing and boosting the budding sector.
For the tech industry, it's full steam ahead — as long as government permitting challenges are addressed, said the executives.
Brad Smith, vice chair and president of Microsoft, said obtaining a permit from the Army Corps of Engineers to build near wetlands is a particular challenge, noting it can take up to 24 months.
He floated the idea of designating a lead agency to speed the processing of applications for AI infrastructure. Such an agency should use AI 'to improve timelines and transparency for applicants and ensure the permitting agencies have quick access to information to assist them in their review and decision-making process,' he said.
Energy Secretary Chris Wright, who has called AI the 'Manhattan Project of our time,' announced a plan in April to potentially build data centers on federal land at 16 sites.
Thank goodness it's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to [e-mail].
Today in POLITICO Energy's podcast: Josh Siegel and James Bikales break down how a public lands amendment could threaten Republicans' megabill.
Power Centers
EPA's overhaul: What to know Environmental Protection Agency Administrator Lee Zeldin's plan to revamp the agency includes another round of organizational changes expected as soon as next week, write Ellie Borst, Miranda Willson and Sean Reilly.
New organizational charts from the agency suggest it may eliminate or renovate key programs that deal with climate change, 'forever chemicals' and pollution prevention.
On the chopping blockTrump wants to cut a program that helps hospitals and emergency managers save lives during natural disasters such as wildfires and tornadoes, writes Ariel Wittenberg.
The Department of Health and Human Services' Hospital Preparedness Program isn't just for hospitals.
Created after the Sept. 11, 2001, terrorist attacks, the program also funds training for emergency managers and emergency responders to make sure every aspect of a region's health care system has a plan for and is able to communicate during disasters, whether they are pandemics, cyberattacks, mass shootings, wildfires or hurricanes.
How carmakers fought EU rules and wonEurope's auto industry successfully petitioned the European Union to loosen regulations limiting planet-warming pollution from vehicles, which the industry said were too costly, writes Jordyn Dahl.
The victory marks yet another blow to the EU's green efforts amid growing resistance.
In Other News
After the storm: Months after Helene, it's still hard to drive these North Carolina roads.
Not just natural disasters: The everyday ways climate change is already making our lives worse.
Subscriber Zone
A showcase of some of our best subscriber content.
Equinor will terminate a New York offshore wind project in the coming days unless the Trump administration lifts a stop-work order issued by the Interior Department, according to a company exercutive.
Elon Musk's artificial intelligence company is considering adding dozens more methane gas turbines to its operations in South Memphis, according to documents xAI submitted to EPA in March.
The Environmental Defense Fund released EPA's annual accounting of greenhouse gas emissions after the agency refused to do so.
The Sierra Club is cutting staff in the latest round of downsizing at the green group that's struggled with budget shortfalls and internal drama in recent years.
That's it for today, folks. Thanks for reading, and have a great weekend!