Powerful House Republican Getting Pressure On Data Centers Back Home

House Energy and Commerce Chair Brett Guthrie has been a supporter of President Donald Trump's quest for the U.S. to dominate on artificial intelligence, but local officials in Guthrie's deep-red Kentucky district have been pushing back on the data centers necessary to make AI work.

The issue is emblematic of the pressure many lawmakers on both sides of the aisle are under on data centers — but particularly notable for Guthrie who wields so much power on the issue.

“I hear from people, I do. I think it’s fair to be concerned,” Guthrie said in an interview. “Now, to say, ‘don’t do anything,’ I think that can take our communities out of what could be the industry of the future. But anytime there's anything developing, it makes people anxious, and it's fair to have concerns."

At least two Kentucky counties that Guthrie represents — Breckinridge and Daviess — have passed one-year moratoriums on data center applications or construction. Another county, Meade, voted down a data center proposal after 3,000 people signed a petition in opposition.

But not only has Guthrie opposed any major federal restrictions on data centers, this month he asked the White House and the FBI to probe whether China is behind some of the opposition to data centers and artificial intelligence.

“Americans deserve to know who is bankrolling the disinformation campaign that seeks to block critical infrastructure investments,” Guthrie said in a statement accompanying the letter.

When it comes to legislation, Guthrie has both questioned the need for new laws on data centers but also joined House leaders in saying Congress "must take action" after President Donald Trump called on lawmakers to codify language making sure ratepayers aren't footing the bill for data center energy use.

The mixed messages from Guthrie and other lawmakers are likely because Congress is only starting to grapple with an issue that is largely playing at the state and local level.

Tug of war

Maranda McDaniel, a Guthrie constituent who started an anti-data-center petition, said she and others have been focusing on county and city officials and had not engaged with Guthrie's office.

She started a petition in Daviess County and was "really surprised" by how quickly it took off. Now that county leaders have passed a one-year pause on data center applications, she wants the city of Owensboro to follow suit.

“I feel like the city is going to do what they want to do, and I feel like if we keep pressing it and we keep showing up to these meetings and we keep voicing our opinions and our concerns, they're going to eventually say, ‘OK, well, this is what we need to do,’” McDaniel said in an interview.

Another county in Guthrie’s district — Hancock — is moving forward with plans for a massive data center project that could ultimately attract as much as $14 billion in investment.

TeraWulf, a Bitcoin mining company, plans to begin construction at the site of a former aluminum smelter. The project, which could come online as early as 2027, would rank among the largest private investments in Kentucky history.

"In Hancock County, KY, an ongoing project is expected to generate meaningful employment opportunities, strengthen the local tax base, and help fund essential public services. Local values and local stakeholders must be the core of driving the future of AI innovation in communities across the country,” Guthrie said in a statement.

But some residents are questioning who stands to benefit. “[The smelter plant] was a source of real, family-supporting jobs for Hancock County,” a Change.org petition opposing the project states.

"More than 600 workers were left waiting and hoping production would one day return," it says. "Now, those hopes have been replaced with a very different proposal."

Will Guthrie act?

Guthrie's Energy and Commerce Committee convened a hearing in April focused on the growth of data centers and their effects on the power grid. The hearing featured several legislative proposals aimed at improving grid infrastructure and forecasting future electricity demand.

Among the most consequential was the draft "Ratepayer Protection Act," which would amend the Public Utility Regulatory Policies Act of 1978 to help ensure that large electricity users — including data centers — bear the costs of the infrastructure needed to serve them rather than passing those expenses on to residential customers.

“As we continue to build the infrastructure needed to win the AI race with China to AI dominance, it's critical that the companies building data centers are the ones paying for their own electric bills,” Guthrie said.

He doubled down on legislation during POLITICO's Energy Summit last week, where he talked about codifying Trump's ratepayer protection pledge. The president has pushed energy companies to promise to pay for their own energy use.

"We have the ratepayer protection pledge, which we want to put into statute," Guthrie said.

Even though some data center advocates accuse China of trying to influence the U.S. debate over artificial intelligence, others know the concern in communities is real.

Josh Levi, CEO of the Data Center Coalition, said of the China claims: “I have no reason to disbelieve that there is some of that happening, but I also indicated we know that there's also organic opposition in communities."

In Kentucky, that opposition continues to translate into outrage at county and city council meetings, where residents come armed with signs urging officials to "listen to the people."

“Pumping the breaks on these data centers is a good idea, and I hope that you guys lean towards a moratorium on these so that we can have more time to see the long-term effects of these things before we just jump headfirst into this,” said Daviess County resident William Sunn during a meeting last month.

Guthrie — like most other federal lawmakers — is against a nationwide moratorium on data centers being championed by Rep. Alexandria Ocasio-Cortez (D-N.Y.) and Sen. Bernie Sanders (I-Vt.).

But while he doesn't want to block data centers and wants the administration to investigate claims of foreign involvement, Guthrie has taken pains not to ignore the unease back home.

“I do not minimize the concerns people have about data centers or just AI,” Guthrie said. “You should be anxious about it.”

Josh Siegel and Pavan Acharya contributed to this report.