Archive · 3 Sep 2026
Commerce Secretary Warns Communities Against Blocking AI Data Centres
US Commerce Secretary Howard Lutnick wants communities to welcome AI data centres.
He says communities that block them could lose investment, jobs and tax money.
Orange County, North Carolina, had paused approval of large data centres for one year.
Lutnick called some concerns about their environmental and economic effects misinformation.
He said companies would build their own power supplies.
He also said the facilities would help local governments collect taxes.
Data centres use computers to train and run AI models.
Demand for these facilities and for electricity is growing as AI becomes more popular.
Commerce Secretary Howard Lutnick said communities blocking AI data centres could lose investment, jobs and tax revenue.
Lutnick called concerns about data centres’ environmental and economic effects misinformation.
Orange County, North Carolina, had imposed a one-year moratorium on large-scale data centres.
He said companies would develop their own power supplies and contribute to local tax bases.
Lutnick said US companies were committing hundreds of billions of dollars to semiconductors, supercomputers and data centres.
- Who
- US Commerce Secretary Howard Lutnick, technology companies and communities considering AI data centres.
- What
- Lutnick warned communities not to block large AI data-centre projects and defended their expansion.
- When
- The comments were made following the G20 Innovation Ministerial; no exact date was provided.
- Where
- Chapel Hill, North Carolina, with Orange County cited as an example.
- Why
- Lutnick said blocking data centres could cause communities to lose investment, jobs and tax revenue, while arguing that the projects would not raise local power costs.
Community Caution
Federal Investment Case
Whether to approve data centres
Community Caution
Some communities are restricting or delaying large-scale data-centre construction; Orange County imposed a one-year moratorium. The article refers to concerns about environmental and economic effects but does not detail the community’s position.
Federal Investment Case
Lutnick said communities that block projects risk losing investment, jobs and tax revenue to areas that welcome them.
Effect on local electricity
Community Caution
Concerns have been raised about whether rapidly expanding data centres could burden local resources or increase electricity prices.
Federal Investment Case
Lutnick rejected the claim that data centres would necessarily raise local power costs, saying companies would develop their own power supplies and could lower costs.
- Speaker
- US Commerce Secretary Howard Lutnick
- Event
- G20 Innovation Ministerial
- Location
- Chapel Hill, North Carolina
- Local moratorium
- Orange County had imposed a one-year moratorium on large-scale data centres.
- Claimed benefits
- Lutnick said data centres could bring investment, jobs, tax revenue and access to advanced AI models.
- Power position
- Lutnick said companies would develop their own power supplies and would not raise local electricity costs.
- Industry investment
- Lutnick said US companies were committing hundreds of billions of dollars to semiconductors, supercomputers and data centres.