The current hysteria over AI data centers highlights how smart the Founding Fathers were to put hurdles in the way of popular Democracy. Rash actions were discouraged, while individual and minority rights were protected against the tyranny of the majority. Historically, momentary popularity of leaders or positions has too often been a fad. However, it has still led to the rule of tyrants. Whipping up the populace to demand moratoria on centers already in the works, as well as future ones, could do the Nation irreparable harm if implemented.

Not long ago, politicians such as Texas Governor Greg Abbott and Pennsylvania Governor Robert Shapiro were touting their states as data center friendly. Many local governments competed for them, often offering incentives. Thousands were built without much notice. All of a sudden, we were hearing horror stories about skyrocketing energy bills, water shortages, and a mind-numbing hum. So much agricultural land is taken out of production; we may starve:

Now Abbott and Shapiro have joined the moratorium chorus. Politicians across the Nation are running over each other to get out in front of the “no AI data centers in my backyard” army. Polls show a wide majority are against the centers.

This revolt against the “monster centers” came home to me over dinner with some Utahns. Somehow our conversation turned to a Mega AI data center development north of the Great Salt Lake. Situated in Box Elder County, the Kevin O’Leary-organized project is truly a mega project on 40,000 acres, consuming 9 gigawatts of power at completion.

The Shark Tank “Mr. Wonderful” investor group secured support from the County, landowners, and the Military Installation Development Authority (MIDA), which fast-tracks Utah developments. How did the celebrity businessman put this energy- and water-consuming Monster over on the good people of Utah? Get ready for skyrocketing energy bills, and say goodbye to the Great Salt Lake. Get ready for the hum. The Oligarchs strike again.

The Stratos Proposal isn’t hard to find. It shows O’Leary and Company are well aware of the problems of putting data centers in the water-deficient West, in a state not known for abundant energy. They make a case that this is a great location for the Mega Centers.

It turns out a gas pipeline runs right through the area, with excess capacity. It’ll supply all the Gas needed to power the entire project. Rather than taking power from the grid, a hookup will supply power from excess capacity, strengthening the system and potentially lowering costs.

The water already allotted for the present farming and ranching on the land will be used in a closed system, so there is zero effect on water usage. People forget that agriculture uses the most water. In my hometown, Phoenix, AZ, people are always stunned that a major housing project uses far less water than the farmland it replaced.

The Great Salt Lake’s decline can hardly be blamed on this project. It’s been shrinking for many years because of water diverted mainly for agriculture and a rising population.

Located in a remote area, few other than cows will hear the hum. Apparently, this isn’t in anybody’s backyard. As for reducing farmland, owners have the right to determine the best economic use of their own land.

I can’t verify the O’Leary proposal’s assumptions, but people risking billions generally do their due diligence. They have to be convinced before it advances very far. This situation exists for 1 to 3 thousand AI data center developments. Billions have committed to putting forward workable plans. The problems are known, and so are the remedies.

Those investing the billions are incurring real costs every day. If the money is borrowed, it incurs interest costs and, in any event, the opportunity cost of what it would earn elsewhere. Given this circumstance, presenting anything but viable plans is unlikely. Yet all we hear are calls for an immediate moratorium on all data centers so government authorities can take the time necessary to investigate and weigh them.

Already, Representative Alexandria Ocasio-Cortez introduced the Artificial Intelligence Data Center Moratorium Act (H.R. 9442) with nine initial sponsors to impose just this sort of moratorium. If you think it’s just Democrats ready to take this action, think again. Republicans, too, are falling in line.  

If the Constitutional changes in the Democratic Socialist Party (DSA) platform were in effect now, it would need only a majority vote in the House of Representatives to take effect. With no real president, no Senate, and a rubber-stamp Supreme Court, there is no way to stop it. It could be the law tomorrow.

Suddenly, billions in capital are stranded in idle projects. Once brought to a screeching halt, getting any of these centers back on track would face the formidable coalition that has blocked developments from mining to housing. Unfriendly foreign nations might foster opposition.

Since pausing the development of Nuclear Power after the Three Mile Island accident in 1979, how many reactors have actually been put in use? France gets most of its electricity from nuclear without incident. Still, we seem to have made nuclear power, a stable and reliable source of power for data centers and more, almost impossible to bring online.

It’s an interesting commentary that Microsoft is proposing to restart the remaining unscathed Three Mile Island reactor to power its Data Centers.

Once a pause is imposed, the harm could be incalculable. Billions lost on Thousands of stalled projects. The resulting aversion to financing any center in the U.S. will divert the AI revolution elsewhere. China will have every chance to take the lead to our detriment, maybe even fatally.

We wouldn’t be that stupid, would we? Well, we just went through a similar political panic with COVID in 2020. An unwarranted near-total lockdown, costing us trillions, with the pain continuing to this day, was imposed literally overnight, despite ample data showing it was the wrong action. At least some saw the error fairly early and reversed course, limiting the damage, or it could’ve been even worse.

Thank goodness the founding fathers were well aware of the panics and delusions of crowds, and built in speed bumps. Even if a House majority passed a Data Center moratorium, it would face a filibuster in the Senate requiring a supermajority. Surmounting that hurdle would still face a presidential veto from a president still favoring the centers. Supermajorities in both houses would be required to override it. As a last resort, the legislation could be challenged in the courts.

While all this takes place, the public overreaction can be challenged and put to rest. Already, the Atlantic has done just that. It has pointed out that it’s driven by exaggerated claims regarding water usage and a tendency to present local trade-offs as national crises.

Others, such as the Hudson Institute, point out that the centers are just factories. Many of the same people decrying data centers are on record lamenting the loss of much noisier, more resource-intensive, and dirtier factories to overseas competitors.

Local communities might become aware of enhanced revenues improving their communities.

We’re lucky the Founding Fathers had their cautions about popular Democracy, and our present Luddite coalitions weren’t around at the time, or we may never have experienced the Industrial Revolution that massively improved humanity’s condition.