Five Concerns About AI Data Centers, and What to Do About Them For decades, data centers were the quiet, reliable engines of the information economy, operating in the background of global commerce and daily life. But with the rise of artificial intelligence (AI), these facilities have been thrust into the public and political spotlight. Concerns continue to gro

AI data centers aren’t the real problem—outdated policy frameworks are.

Smarter measurement, better market design, & more modern grid management can address these challenges without slowing innovation.

🔗 Our new report breaks down the top five concerns & what to do instead:
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False “Made in USA” claims are a real problem. But shifting liability to online marketplaces misdirects enforcement & risks higher costs & fewer products.

🔗Our latest commentary:
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Sidewalk delivery robots are coming to U.S. cities, but most states are moving slowly.

As Eli Clemens explains, Policymakers should study China’s approach: pilot zones, smart sidewalks, and coordinated rules.

🔗Read the analysis:
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Senator Sanders and Rep. AOC introduced a bill to halt new AI data center construction—but the case for a moratorium rests on a mix of misplaced concerns about AI safety, energy costs, and jobs.

See our full statement from Hodan Omaar:
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Agentic commerce is nearly here. But regulation hasn’t kept up, with rules still assuming human decision-making.

As Eli Clemens explains, policymakers should update these frameworks for AI-driven commerce without slowing innovation.

🔗Read the piece:
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Utah is showing states how to regulate AI in healthcare: don’t block it—test it.

Its approach helps beneficial tools reach patients, supports smarter regulation, and clarifies liability so clinicians can use AI with confidence.

Our latest commentary:
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The White House has released its National Policy Framework for AI—offering Congress a clear, pro-innovation blueprint that targets real harms, supports adoption, & avoids a patchwork of state laws.

Our full statement from Director Daniel Castro:
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The UK government released its Copyright and AI Report with no proposal or timeline for reaching one.

While avoiding a flawed policy is better than rushing, continued inaction is unsustainable.

Our statement from Policy Analyst Matthew Kilycone:
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🚨NEW: AI systems rely on publicly available information across the Internet to learn and reason.

Our latest report from Daniel Castro explains how policymakers can protect privacy without restricting the data that powers innovation.

🔗Read the analysis:
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The European Parliament has disabled built-in AI features on staff devices over security concerns, but bans don't reduce risk.

The better path is risk-based oversight using existing EU guardrails.

🔗Read the analysis:
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The Pentagon–Anthropic dispute shouldn't be settled in backroom contract negotiations.

In Tech Policy Press, the Center's Daniel Castro explains why Congress must step in to set clear statutory boundaries for military AI use.

🔗Read the piece:
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At the State of the Union, President Trump announced a 'Ratepayer Protection Pledge' calling on major tech companies to build their own power plants for AI data centers — a pragmatic path that keeps costs off American households.

Our full statement from Hodan Omaar:
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Public Sector AI Adoption Index 2026 Governments are entering a critical phase in the adoption of AI. It is already contributing to everyday public sector work, and the question is no longer whether to adopt AI, but how to do so both effectively and responsibly.The opportunity—if governments get this right—is vast. Many leaders recog

AI is spreading across government.

80% of public servants say it empowers their daily work. 📈

But impact depends on leadership support, clear guidance, & access to approved tools.

More in our Public Sector AI Adoption Index⤵️
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AI-driven data center growth has raised concerns about household electricity costs. But the policy response matters.

Hodan Omaar explains why the GRID Act misdiagnoses the problem—and how better market design can protect consumers while supporting innovation.

🔗Read the piece:
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5 Q’s with Naren Tallapragada, CEO of Tessel Biosciences The Center for Data Innovation recently spoke with Naren Tallapragada, CEO of Tessel Biosciences, a Massachusetts‑based company using AI to advance drug discovery for complex diseases. Tallapragada described why chronic diseases are so difficult to treat, given their biological complexity and patien

Data innovation in drug discovery is reshaping chronic disease treatment.

In our latest 5Qs, we spoke with Naren Tallapragada, CEO of Tessel Biosciences, on how AI-driven insights into human cells are guiding more effective therapies.

Read the full interview:
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EU leaders are calling for an “Airbus of payment systems” to reduce reliance on Visa and Mastercard.

But the EU’s payment sovereignty push would hurt consumers—addressing hypothetical risks, not real market failures.

The Center's Matthew Kilcoyne explains in his latest:
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🚨NEW: The EU often celebrates its ability to set global rules—a phenomenon known as the Brussels Effect.

But our latest report finds that this “regulatory export” comes with high costs for the Global South.

Read the report:
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Starting now in Washington, DC📍

Leaders from government, industry, & civil society convene to advance multilateral AI partnerships in a pre-summit event we're hosting with The Dialogue ahead of the 2026 India AI Impact Summit.

Advancing Multilateral AI Partnerships: A Pre-Summit Event for 2026 AI Impact Summit Ahead of the 2026 AI Impact Summit in New Delhi, the Center for Data Innovation and The Dialogue are convening an official pre-summit event, sponsored by Google, in Washington, D.C., on January 20, 2026.The India AI Impact Summit is a global summit that seeks to move AI cooperation beyond high-l

📢 TOMMORROW, Jan 20 at 12 PM ET:

Join us & The Dialogue for a D.C. pre-summit convening focused on closing the global AI divide through stronger multilateral partnerships ahead of the 2026 India AI Impact Summit.

Free registration👇
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Advancing Multilateral AI Partnerships: A Pre-Summit Event for 2026 AI Impact Summit Ahead of the 2026 AI Impact Summit in New Delhi, the Center for Data Innovation and The Dialogue are convening an official pre-summit event, sponsored by Google, in Washington, D.C., on January 20, 2026.The India AI Impact Summit is a global summit that seeks to move AI cooperation beyond high-l

📢 Next Tuesday, Jan 20 @ 12 PM ET:

How can AI cooperation move from principles to real-world impact?

Join us and The Dialogue in Washington, D.C., for a pre-summit discussion, sponsored by Google, feeding directly into the 2026 India AI Impact Summit.

Details + registration ⬇️
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New York claims its new AI safety law aligns with California’s framework.

But beneath the surface, the RAISE Act introduces rules that diverge sharply—creating a patchwork that threatens national coherence in AI regulation.

Hodan Omaar's latest:
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Advancing Multilateral AI Partnerships: A Pre-Summit Event for 2026 AI Impact Summit Ahead of the 2026 AI Impact Summit in New Delhi, the Center for Data Innovation and The Dialogue are convening an official pre-summit event in Washington, D.C. on January 20, 2026.The India AI Impact Summit is a global summit that seeks to move AI cooperation beyond high-level principles toward

🗓️Tuesday, Jan 20 @ 12 PM ET:

Ahead of the #IndiaAIImpactSummit2026, join us & The Dialogue in Washington, D.C. for an in-person pre-summit event on advancing multilateral AI partnerships & closing the global AI divide.

Free registration⤵️
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Europe’s ePrivacy reforms aim to ease cookie consent fatigue, but their modest tweaks arrive too late & leave the outdated opt-in model—& the friction it creates—largely intact.

Daniel Castro's latest👇
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President Trump’s latest AI executive order sends a clear message: the U.S. needs a cohesive national framework—not a patchwork of state laws—to stay competitive.

Read our full statement⤵️
datainnovation.org/2025/12/the-white-house-...

The U.S. can’t lead in AI if every state writes its own rules.

Federal preemption creates a single, clear framework that protects consumers, supports innovation, and keeps America competitive.

Daniel Castro answers 15 FAQs showing why common objections don’t hold up.👇
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President Trump’s new Genesis Mission marks a major national effort to accelerate scientific discovery with AI.

The Center's Hodan Omaar highlights the unified push to speed breakthroughs that strengthen U.S. prosperity, security, and public benefit.

Full statement:
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Improving Workplaces With Data and Technology Data-rich technology is reshaping workplaces across industries—from factories and logistics centers to offices and hospitals. Wearable health monitors, environmental sensors, and automated tracking systems can protect workers from injury, reduce fatigue, and enhance overall workplace experience and

🚨STARTING NOW:

Join us for an expert panel discussion on how workplace tech—like wearables, sensors, and automation—can improve safety, health, and productivity, and the policies needed to support adoption.

Watch here👇
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Improving Workplaces With Data and Technology Data-rich technology is reshaping workplaces across industries—from factories and logistics centers to offices and hospitals. Wearable health monitors, environmental sensors, and automated tracking systems can protect workers from injury, reduce fatigue, and enhance overall workplace experience and

📆TOMORROW, Nov 20, 10 AM EST:

Workplace tech shouldn’t just be about surveillance fears.

Join us as our virtual expert panel discusses how balanced policies can help workers benefit from health monitors, environmental sensors, and automation.

Register below:
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The EU’s new Digital Omnibus aims to simplify digital rules, but unless it confronts its flawed regulatory model, Europe will keep tweaking at the margins instead of enabling true digital innovation.

Read our full statement⤵️
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French President Macron & German Chancellor Merz called for greater European Digital Sovereignty at today’s Franco-German Summit.

Our statement:
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