New Senate bill would continue data center construction

 China’s leaders were probably very happy with the data centers outcomes in the 2026 U.S. elections. If not shaped by China’s propaganda campaign, the results were at least consistent with it. Voters rejected unfettered data centers in 39 of 40 local ballot measures. Candidates who promised moratoriums on data center approvals won. These votes threaten to derail the current boom in data center construction, which is driving rapid U.S. economic growth and keeping the U.S. technologically ahead of China.

There are real issues to address concerning data centers, and fake issues. In order to continue data center construction, the Senate is rapidly moving to pass The Bipartisan American Affordability and Jobs Act (S. 5653), which would speed up the permitting and building of AI data centers and electricity power plants. The bill would also address valid concerns about increased electricity rates by requiring that companies pay any increased electricity costs which result from data center operation. On Sunday, in a TruthSocial post, President Trump urged Senators to vote for it. He wrote:

I am urging all Senators to vote for The American Affordability and Jobs Act (S. 5653)! This Bill is a BIG WIN for U.S. ENERGY INDEPENDENCE and DOMINANCE.

This Landmark Permitting Reform Legislation will codify our America First Energy Agenda, and ensure that we can build Pipelines, Mines, and Power Plants faster than ever before, lowering Energy Costs for American Families, and creating High Paying American Jobs.

This Legislation also codifies my RATEPAYER PROTECTION PLEDGE, ensuring Data Centers build and pay for their own Electricity, and help invest in their local communities. Remember, China will take any Data Center that we don’t want, and pay lots of money for it. We’re Number One — Let’s keep it that way! Call your Senator TODAY, and tell them to vote YES. President DONALD J. TRUMP

The next day, the Senate voted 73-25 to formally take up the bill. This included support from almost half of the Democrats. 

Issues Surrounding Data Centers

By transferring the increased electricity costs from households to the data centers, the bill addresses the concern of 50% of households (according to a Pew Research Center poll) that new data centers in their area would increase energy costs. According to the best study, conducted by economists at U. of Chicago and Yale U., this is indeed a valid concern. Local data centers do cause an increase in the electricity prices of the counties where they are located.

Other concerns have less basis, including worries about water. A concern raised by demonstrators opposing data centers in Arizona was that they use too much of the available water. Some states, including California, keep water scarce by making new desalination projects prohibitively expensive. Others, including Florida, keep water inexpensive by making desalination projects feasible. And in many states, water is plentiful.

Also, some data centers are air-cooled, not water-cooled. Some use waste water, instead of potable water. And, overall, data centers don’t use very much water. According to the Florida Water & Pollution Control Operators Association:

Nationally, the aggregate impact is significant but not enormous compared to other sectors. All U.S. data centers combined were estimated to consume about 449 million gallons of water per day (1.7 billion liters) as of 2021. That’s roughly 0.3–0.4% of total U.S. daily water withdrawals – a small slice compared to agriculture or power generation.

Advantages of Data Centers

According to a Gallup poll, of those who favor data centers in their area, 66% mention local economic benefits. These people are correct. The U. of Chicago and Yale U. economists found that data center effects upon the counties where they are located include long-term “increases of about 5.9 percent in tax returns, 8.2 percent in adjusted gross incomes, and 5.9 percent in wages” (p. 13).

These large positive effects are only slightly due to the payrolls of the data centers, which don’t directly employ that many people. However, those that they do employ, usually earn six-figure salaries. According to this tech journalism article:

Data centers offer a range of jobs, from hands-on technical positions to management roles. Data center technicians install servers, monitor network performance and troubleshoot issues. Critical facilities engineers focus on the mechanical and electrical systems that power and cool the facility, maintaining equipment like chillers, generators and backup batteries. At the top, operations managers oversee daily operations, manage staff, coordinate vendors and ensure compliance with safety and security standards. Many of these positions rely on certifications, apprenticeships and other technical programs rather than traditional four-year degrees.

A joint op-ed on Sept. 30 by Pennsylvania’s two Senators, David McCormick (R) and John Fetterman (D), laid out the stakes. They wrote:

To win the AI race, America needs more brute computation and energy, which means more data centers. It is a national security imperative. These projects also create good-paying jobs and increased tax revenue that supports schools, policing, and infrastructure….

The U.S. economy is currently growing at a rapid 3.4% pace. The increased business investment (which includes the building of new data centers) is the strongest contributor to that rapid growth. None of the world’s other industrial economies have even half our growth rate. This bill would keep that rapid growth rate going.

At the same time, it would protect households from the spikes in electricity prices which normally occur after data centers go into operation nearby. In fact, the new power plants that this bill would facilitate would supply more electricity, and could even lower the electricity prices that households pay. 

This bill is a win-win-win. It is a win for U.S. economic growth. It is a win for continuing the U.S. technological lead over China. And it is a win for the communities that would experience higher incomes when data centers locate nearby.

Howard Richman and Jesse Richman co-authored the 2014 book Balanced Trade, published by Lexington Books, and the 2008 book Trading Away Our Future, published by Ideal Taxes Association.

https://www.americanthinker.com/blog/2026/11/new-senate-bill-would-continue-data-center-construction/