ITIF Fellow Warns Data Center Ban Risks U.S. AI Competitiveness

ITIF's Atkinson argues local data center moratoria threaten tax revenue and jobs, urging targeted regulation over blanket bans to preserve U.S. AI infrastructure leadership.

Woofun AI reports that Robert D. Atkinson, Senior Fellow at the Information Technology and Innovation Foundation (ITIF), criticized local policies restricting data center construction, arguing they could harm tax revenue, employment, and U.S. AI infrastructure competitiveness.

Atkinson stated that blanket suspensions fail to address environmental concerns effectively, noting that new cooling technologies reduce water usage and that existing regulatory mechanisms should evaluate projects based on specific resource needs. He argued that attributing electricity price hikes solely to data centers is inaccurate, as developers have committed to covering additional costs to prevent shifting burdens to residents. Atkinson warned that the moratorium risks losing investment and jobs, citing the delayed $1.4 billion Atmosphere Data Centers project, which was projected to contribute approximately $758 million in tax revenue to Montgomery County over the next 15 years. He concluded that restrictive local measures could weaken the U.S.'s competitive advantage in artificial intelligence amid rapid infrastructure development.