Restrictions on the construction of artificial intelligence data centers in the United States could compel American companies to process sensitive data overseas, raising national security concerns, according to Brittany Kaiser, CEO of Alpha Compute and a data privacy advocate.
As states and local governments consider new regulations for the rapidly expanding data center industry, Kaiser warned that moratoriums and limitations on new facilities might push U.S. businesses to seek computing capacity in other countries. This shift could result in American companies utilizing data centers in nations where data privacy and security standards may not align with U.S. interests.
"One of my top concerns as a top data protection and privacy advocate is that with data center moratoriums being passed in the United States that it will force Americans and American companies to send our data to be processed abroad in other countries," Kaiser stated. "American companies are going to still run their AI. They're still going to be purchasing data center space in other countries, and it means our sensitive information will be sent abroad and shared with companies and organizations that might not have America's best interests at heart."
Data centers, crucial infrastructure for the digital economy, house servers and computing equipment that process, store, and transmit information for various technologies, including email, social media, streaming services, and AI platforms. The escalating demand for AI has fueled a surge in the construction of increasingly powerful data centers that require substantial electricity, advanced chips, and high-speed network connections.
Kaiser acknowledged that concerns regarding electricity costs, grid reliability, water consumption, noise, and environmental impacts are valid. She advocates for "common sense regulation" for companies developing data centers, noting that responsible developers can implement measures such as closed-loop water cooling systems and on-site power generation to mitigate strain on local grids. Alpha Compute, she noted, is developing projects designed to operate "off-grid, behind the meter."
Pennsylvania is among the states enacting new requirements for large data center developments, while Texas Governor Greg Abbott has encouraged data centers to generate more of their own power and cover infrastructure costs. New York Governor Kathy Hochul previously imposed a one-year moratorium on new hyperscale data centers.
Kaiser emphasized the growing importance of domestic computing infrastructure, comparing its necessity to energy independence. "Compute power has now become nearly a utility," she said. "We want to have the right to compute. We want to be able to process data within our own borders as a national security priority, but also for our own intellectual property to make sure we're not sending our data abroad."
To address these issues, Kaiser has launched a campaign called "Right to Compute," which advocates for domestic data center development alongside sustainability standards and regulation. The campaign promotes the idea that Americans and American companies should have the ability to process all sensitive data within the nation's borders for both national security and intellectual property protection.