Dems skeptical of Big Tech data center promises
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Tech companies are promising they'll pay for their AI data center demands, but some Democrats aren't buying it and want stronger commitments.
Why it matters: The tech industry is scrambling to make clear their AI ambitions won't make life more unaffordable for Americans as high prices become the focal point of upcoming elections.
Driving the news: An investigation launched by Sens. Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.) and Richard Blumenthal (D-Conn.) into how much data centers could drive up people's electricity bills has yielded new commitments from the industry to "pay their fair share."
- But the companies did not explain how, the lawmakers announced Thursday.
- "If these companies are serious about paying their fair share, at a minimum they'd be more transparent about their data centers' operations instead of forcing local communities to sign NDAs," Warren said.
What they found: The senators probed Google, Amazon, Meta, Microsoft, CoreWeave, Digital Realty and Equinix.
- Google in its response said it would pay for all of the electricity it uses and "contribut[e]" to other costs.
- The senators note there are many other costs associated with data centers that fall on consumers, like upgrades to connect data centers to the grid.
- Microsoft, Coreweave and Equinix, among others, committed to supporting a separate rate class for data centers to make sure people don't have to pay the same rates as they do.
- But the senators said that alone isn't enough: If a company were to abandon its data center, a separate rate class with no other guardrails wouldn't protect people from higher bills.
Companies also didn't answer questions regarding their contracts with utility companies, such as the rates that data centers pay, which the senators said is crucial to understand how costs are passed down to people.
- "Big Tech's lackluster responses to our inquiry do nothing to assure families that energy-guzzling data centers will stop causing their utility bills to skyrocket," Blumenthal said.
What's next: The senators said they plan to continue their investigation.
- Van Hollen said he'll push for his bill to require data centers to cover the costs of the energy they need.
