EPA chief cautions against state data center bans, warns of ceding AI lead to Beijing

EPA Administrator Lee Zeldin said on Sunday that statewide moratoriums on data centers could undermine U.S. competitiveness in artificial intelligence against China. He acknowledged public concerns about energy costs and environmental impacts but argued that responsible development is possible. Zeldin noted that several tech companies have pledged to cover increased energy costs under a voluntary administration initiative.

Zeldin's remarks come as several states weigh restrictions on new data center construction amid rising electricity demand and community pushback. He positioned such moratoriums as a potential strategic setback, arguing they could slow American progress in artificial intelligence while Beijing continues its own rapid expansion in the sector.

The administrator acknowledged that local concerns over energy costs and environmental strain are legitimate, but he maintained that development and responsibility are not mutually exclusive. He pointed to voluntary pledges from technology companies to absorb higher energy expenses under an administration-backed initiative as evidence that industry can address public concerns while advancing infrastructure.