The war on data centers jeopardizes our economy and national security

Op-Ed Highlights Growing Opposition to U.S. Data Center Expansion, Citing National Security and Economic Risks

A senior fellow at the Hudson Institute is warning that local and state efforts to block new data center construction could play directly into the hands of China, which he describes as America's chief rival in the global race for artificial intelligence dominance.

In an opinion piece, Arthur Herman drew a pointed parallel to the early years of World War II, suggesting that obstructing domestic industrial capacity during a technological arms race would amount to strategic self-sabotage.

"Any commonsense observer in 1940-1941 would know the only beneficiaries of these obstructionist tactics were our nation's enemies," Herman wrote.

The U.S. and China together control roughly 90% of the world's AI compute capacity, with the United States holding about 75% and China around 15%, according to figures cited in the piece. While China has concentrated on industrial and military applications of AI, the U.S. remains the leader in generative AI and broader innovation, a lead Herman argues could erode quickly if domestic infrastructure falters.

At the center of his concern is a growing movement of local governments imposing restrictions on new data centers. According to the piece, 78 local jurisdictions across the country have enacted temporary moratoriums or bans on new data center construction. New York is the only state to impose a full moratorium so far, but 14 other states, including Florida, Oklahoma, and Georgia, are considering similar measures.

Herman argued that the economic stakes are significant, pointing to projections that AI and its supporting infrastructure could add trillions of dollars to the U.S. economy, with annual GDP growth potentially increasing by 1.5% to 3.7%. In Georgia alone, he said, a data center ban could put 552,000 jobs and $850 million in tax revenue at risk.

Beyond economics, Herman framed data centers as a national security imperative, citing AI applications ranging from autonomous military systems to cyber threat detection and intelligence analysis.

The opinion piece did not name a specific triggering event, and Maine News Now was unable to independently verify the figures cited or the current count of jurisdictions with data center restrictions. Several links embedded in the original text referenced ongoing coverage of data center opposition and allegations of foreign involvement in anti-data-center campaigns.

The piece also included promotional links to other commentary and to a biography of the author, a common feature of online opinion sections.