Tech and Telecom Groups Seek Government Subsidy for Data Center Growth
The federal government should financially support the growth of data centers in the U.S., telecom and tech groups said last week in comments to NTIA. Meanwhile, an Amazon workers' organization urged that NTIA should be aware of data centers' carbon footprint and skeptical about industry’s environmental impact assessments.
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The Wireless Infrastructure Association previously commented on the importance of data center growth for wireless deployment and the need for streamlining permitting processes (see 2411050044)
The Telecommunications Industry Association in comments posted last week said the federal government should provide “financial support to individuals and organizations that operate and contribute to data center standardization efforts in order to encourage participation and enforce the importance of this contribution.” TIA noted programs that could provide financial support: NTIA’s Public Wireless Supply Chain Innovation Fund, the National Institute of Standards and Technology’s Capacity Building Pilot Program and provisions anticipated through the White House’s National Standards Strategy for Critical and Emerging Technology.
“While standards are critical to organizations and countries, it is not always easy to see the benefits of the expense incurred in contributing to standards development because such development does not generate immediate and direct sales and revenue,” said TIA. The government should provide support to organizations that are establishing “standards relevant to data center design, build, operation, and growth under their broader remit.”
OpenAI also called for “increased government support.” Federal and state entities could provide “incentives, grants, or regulatory support to encourage data center expansion, especially if aligned with clean energy or digital infrastructure goals,” said OpenAI in comments. “It is a particular strength of the United States that there is bipartisan government engagement and interest in accelerating regulatory and financial support at both the federal and local levels.”
Amazon Employees for Climate Justice told NTIA that tech companies like its employer are prioritizing data center growth so it can “outcompete” other players in the market for AI-related services. “This comes at the expense of our communities’ health and our national energy system’s future,” said AECJ. “Amazon and Big Tech companies are threatening our nation’s clean, renewable energy transition, and there’s a lack of transparency about what the Big Tech companies are actually doing.”
The organization submitted a report to NTIA showing that while Amazon has promised to reach net-zero emissions by 2040, its annual carbon emissions have grown some 34% since 2019. “How can Amazon be taking its responsibility seriously as a major carbon polluter, when its emissions have ballooned since The Climate Pledge?” the report said.
TechNet urged the government to foster an “environment that prioritizes grid modernization, access to renewable energy, streamlined permitting processes, and clarity around security compliance requirements.” Amazon is a TechNet member. The association called for “clear and efficient” approval processes at all levels, as well as “favorable tax and fiscal policies.” More than 25 states now offer sales and use tax exemptions and property tax incentives for data center-related projects, said TechNet.