00:00where voter anger over higher electricity bills, water use, is putting politicians on the defensive
00:06even in data center strongholds like Virginia and Texas. Jason Oxman is the CEO of the Information
00:12Technology Industry Council and joins us for a discussion. This is fascinating because we are
00:21getting closer to the midterms. There are specific races across the board where data centers have
00:27become a central issue. Lay out the landscape you're seeing in those races and why you think
00:32this is happening. Well it's great to be with you Ed and you know as Peter noted there are politicians
00:38that recognize in Brazil as they do in the United States that AI is the infrastructure of the future
00:46and there's been a lot of talk about construction of data centers which are essentially AI factories.
00:52What I find fascinating about the political aspect here is I think the facts show very clearly that AI
00:59infrastructure investment is creating tens of thousands hundreds of thousands of jobs across
01:03construction and the various trades but also across the various scientists as well that go into these data
01:11centers and operate them. So it's good for jobs but there are concerns as you noted about the state of
01:17the
01:17economy more broadly. The extent to which data centers are responsible for higher power bills the answer
01:23to that again is in the facts they're not. Data centers use a low single digit percentage of overall power
01:30in the country. There are a lot of other factors that go in but it is incumbent on the tech
01:34industry to respond
01:35to these concerns. I think you're seeing that response pick up in recent weeks as well. Jason you represent the
01:42trade
01:43association that represents the tech industry right but it's interesting you seem to be acknowledging
01:48that the concerns that everyday Americans have are warranted right. Does the industry hear those concerns?
01:57Is it taking action to at least engage on them? I think it's both industry and government. I'll give you
02:03an example.
02:04The Trump administration has convened not one but two ratepayer protection pledge events where the tech industry
02:11in partnership with utilities is pledging not to raise rates on consumers. You've seen multi-billion dollar investments
02:18by the tech industry in power generating capability and modernizing grids and other steps to minimize the impact
02:25on consumers. So I think we are taking it very seriously as an industry and we do of course need
02:29to work in partnership
02:30with government to make that happen. The ratepayer protection pledge is a good example of that. But you're right the
02:36tech industry
02:37the tech industry can do more and we are endeavoring to do more investing in power companies themselves.
02:43You've seen Microsoft's investment in restarting nuclear power capability adjacent to one of their data centers.
02:48For example, Meta has invested in Louisiana in additional generation capability as well. So there's more to do.
02:56And it is important that we be responsive to these concerns that are raised.
03:01Should we talk about advertising? It's very interesting to look at the data that's available
03:07and see directly how the data center industry or those that rely on data centers are sort of getting out
03:15into the world.
03:16This is ad spending broken out by party. So Democrats account for the vast majority of it, 73%.
03:22What are you seeing among your members in the marketplace for advertising around data centers?
03:29Well, there is a lot of advertising taking place because I think there's a lot of need to correct a
03:34lot of public perception
03:36and feelings about data centers. Data centers have been around for decades.
03:41You know, I've lived in Northern Virginia for 30 years and the data centers in Northern Virginia, of course,
03:45are the reason we have the Internet and data centers are the reason that I'm able to talk to you
03:50via this video connection.
03:51They're the reason we're able to send emails, the reason that our doctors can access our medical records,
03:55the reason we're able to do everything that we can do to communicate and stay in touch with each other.
03:59And that's been the case for decades and decades. There are 5,000 data centers in the country today,
04:05and those have been around for many, many years. So I think the reason you're seeing a lot of communication
04:09with the public
04:10around data centers is an effort to make sure that we remember that they are AI factories, yes,
04:15but they're also the factories that make all of our digital infrastructure possible.
04:20Right.
04:20And they are a good thing. A lot of community concerns being raised about what they look like and their
04:25power usage.
04:26But I think the facts really are there to address the underlying question about data centers,
04:32which is, are they good for the American economy, good for the American people?
04:35And I think the answer to that is an unequivocal yes.
04:39If data centers have always been there, right, the difference now is that we're in the AI age.
04:45And I think what's very interesting, Jason, is to what degree do you recognize the distinction
04:49between the American public's concern about data centers and the American public's concern about AI generally?
04:58I think that's an interesting question. And I do think there is a certain aspect of this discussion that renders
05:05data centers a proxy for AI.
05:08I think you're right that that is conflated in a lot of people's views.
05:12And I do think there's a broader discussion happening about the role that AI will play in American society going
05:19forward.
05:20But I think there are a couple of things that are important to keep in mind.
05:23And we're obviously encouraging policymakers to think about that as well.
05:27There are ways to address the concerns about the proper regulatory environment for AI without engaging in bands of data
05:35centers,
05:35which is what that proxy has resulted in.
05:37You've seen governors in red and blue states put pauses on data center construction moratoria in place because of those
05:45concerns.
05:46And I think you're right. That is a proxy in some ways for AI.
05:49But I think if we want to remain competitive and I'll go back to Peter's story about Brazil.
05:53The reason Brazil is doing what it's doing is because it's in competition with Argentina and Chile to attract data
05:59center investment.
06:00America is in competition as well. The competition is with China.
06:04And that competition should lead us to want to make the AI infrastructure investment in the United States to ensure
06:10that we have that economic growth available to us.
06:14But the discussion is, as you noted, leading us to a place where people are talking more about pauses on
06:19data construction.
06:20They're going to get built and the AI investment is going to be made.
06:23The question is, is it going to happen here, which we certainly hope, or is it going to happen overseas,
06:27which we hope it won't?
06:29Yeah.
06:29It's good.
06:29But, it's good.
06:29It's good.
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