Data centers want more government subsidies

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From staff reports As data center growth surges across the country, including Oklahoma, the industry is pushing for more help from the federal government to ensure sufficient electrical power is available.

The industry’s group, the Data Center Coalition, asked Treasury Secretary Scott Bessent to continue with rules governing subsidies for wind and solar energy. The group’s members include powerhouses Google, Amazon and Microsoft.

Google announced plans recently to spend $9 billion in Oklahoma on an expansion of its data center in Pryor and construction of a new center in Stillwater.

According to Reuters, the group sent a letter to Bessent stating “any regulatory friction which slows down today’s deployment of new generation directly impacts on our ability to meet AI era electricity demand tomorrow.” The industry group also argued that continued subsidies for wind and solar operations will help keep the industry ahead of China’s competition.

The coalition tried to shore up its argument by pointing out that between 2017 and 2023, the industry contributed $3.5 trillion in gross domestic product to the U.S. and directly employed more than 600,000 workers.

The industry also contends any restriction or reduction in federal tax credits on clean energy would slow the development of new power generation.

But last week, U.S. Agriculture Secretary Brooke Rollins announced an end to subsidies for solar farms that might be built on producing farmland.