The rise of artificial intelligence is driving a surge of data center construction across the U.S., and everyone is feeling the impact. ROKK Solutions brought together a powerful group of technology and energy leaders to discuss how to power the rising demand of AI. Executives and strategists from both fields participated in an open conversation about the challenges, risks and opportunities in the AI and energy industries.
Ahead of the event, ROKK surveyed the participants on the obstacles faced by energy and tech leaders amid a rapidly changing political landscape and market uncertainty. The event explored the survey findings and examined the critical crossroads confronting the U.S. energy and AI sectors.
“At ROKK, we pride ourselves on helping leaders and policymakers find common ground on the most pressing issues,” said Ron Bonjean, ROKK Solutions’ co-founder and Partner. “Whether you are focused on the economic competitiveness of AI, its implications for national security or its impact on the environment, there is a vested interest in recognizing the potential AI has to transform the way America uses its energy.”
Here are the key takeaways from the conversation:
Amid the hype and uncertainty, leaders must reframe how we talk about AI
While conversations about AI continue to dominate headlines, one of the most significant challenges is not technological but educational. A majority of participants see the current regulatory approach to AI’s energy consumption as ‘highly fragmented,’ but some argue that the issue stems from a lack of education about AI, from policymakers on Capitol Hill to teachers in the classrooms.
Lawmakers are juggling being experts in multiple fields, so fully understanding the complexities and development of AI and its effects on their constituents has led to insufficient legislative and regulatory oversight. This knowledge gap about AI has influenced how both policymakers and the public perceive its risks and its endless potential to improve our lives.
“People don’t talk about the value AI gives to people in their individual lives,” said a participant. “We need better communication about how AI helps people.”
Industry leaders are now working to shift that narrative, highlighting how AI can be used for good. Such as analyzing grid infrastructure, satellite imagery, weather predictions and more to prevent the next wildfire and helping farmers monitor soil conditions to minimize crop losses.
Permitting reform is still everyone’s problem–even in the technology sector
An overwhelming majority of participants agreed that the U.S. electrical grid is inadequate to meet the growing demand for AI, with over 50% believing that AI poses a substantial challenge to the electric grid. One of the biggest challenges facing today’s energy leaders is the regulatory environment, particularly in terms of permitting reform.
In the world of AI and energy, permitting reform is crucial to accelerating the development of critical infrastructure needed to support AI and data centers. In addition, half of the participants agreed that the current regulatory approach is highly fragmented, which hinders progress, causes delays and increases costs. While permitting reform is one of the biggest challenges, one participant said, there’s more work to do before we address those pitfalls:
“On the data center side, our permitting priorities differ. They are actually more focused on NSR [New Source Review], the Clean Air Act. So we’re already talking about the permitting reform, but then people don’t get granular enough to talk about what that means,” mentioned one participant. “I don’t think we’re necessarily ready to tackle the reforms that are needed to go one step further to address the data centers.”
Despite the administration’s best efforts to address AI issues, including the AI Action Plan, the ‘Take it Down’ Act and the recent executive order on non-permitting reform, one participant claims they have not seen much momentum in Congress to address the issue.
State vs. Federal: who rules?
Much of the urgency to find actionable solutions to the challenges of AI integration into the energy sector stems from the belief that the U.S. cannot afford to lose the AI race to its adversaries. A sore point for many participants is the current regulatory patchwork, which stifles innovation and threatens to leave the U.S. behind in the AI race.
A participant acknowledged that the issue of state regulations versus federal regulations is not something only Congress can solve and referred to the complexity of the issue as trying to “untie the Gordian knot.”
At the federal level, government agencies set broad frameworks for priorities such as grid reliability, national security and data security, but state-level AI legislation is more tailored to the local conditions and needs of its residents. This separation leads to complications with interstate coordination. The competing priorities between the much-needed federal oversight and state autonomy are a challenge, but also an opportunity. The federal government can provide initial guardrails for AI while adjusting legislation to meet state needs. Remaining in lockstep with each other will transform not only the tech landscape but also the nation’s energy future.
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