Data center owners ask US Treasury to maintain renewable energy subsidy regulations

The Data Center Coalition, which includes Google, Amazon, and Microsoft as data center owners, has called on U.S. Treasury Sec. Scott Bessent, to maintain existing rules regarding wind and solar energy subsides, stating that they have allowed the industry to grow rapidly and remain ahead of China's competition.

Why it's important

A tighter set of rules for qualifying projects for federal tax credits on clean energy could slow the development of new power generation, at a moment when artificial intelligence and digital economy are driving a surge in demand.

KEY QUOTE

In a letter sent to Bessent, the coalition stated that "any regulatory friction which slows down today's deployment of new generation directly impacts on our ability to meet AI era electricity demand tomorrow." The letter was dated 4 August but seen on Friday.

CONTEXT

In July, President Donald Trump signed an executive order directing Treasury Department to tighten the rules for clean energy tax credits. This included redefining when a project has begun construction.

Clean Energy Associates, an advisory firm, projected this week that the United States would lose 60 gigawatts in planned solar capacity by 2030 if "beginning construction" regulations are tightened.

By the Numbers

According to the DCC, between 2017 and 2023 the U.S. Data Center Industry contributed $3.5 trillion in gross domestic product to the country and employed directly over 600,000 people.

What's Next?

Treasury Department will issue updated guidelines by August 18. Reporting by Nicholae Groom, Editing by Andrea Ricci

(source: Reuters)