Owners of Data Centers Request US Treasury to Retain Clean Energy Incentives Rules

Data center owners in the United States are calling on the U.S. Treasury to retain clean energy incentives rules for solar and wind energy, arguing that these policies have been instrumental in supporting the data center industry’s growth and maintaining its competitiveness against China.

The recently-passed Big Beautiful Bill continued the Trump administration’s anti-climate action stance by changing energy incentives rules and speeding up the expiration of certain renewable energy subsidies, putting America’s nascent green energy industry, and sectors that rely on it like data centers, in significant jeopardy.

The Data Center Coalition is asking U.S. Treasury Secretary Scott Bessent to retain current solar and wind energy subsidy rules to ensure the stability of America’s massive data center industry. More stringent eligibility rules for federal renewable energy tax credits could severely impact the segment, slowing development of new energy capacity while artificial intelligence and the continuous march toward total digitization cause demand for electricity to skyrocket.

With large language models like ChatGPT, Perplexity, and Claude collectively boasting tens of millions of users across the country, the data centers housing the computing infrastructure that runs these AI systems consume enormous amounts of electricity.

To limit their environmental impact, energy-intensive data centers across the U.S. have become increasingly reliant on renewable energy. Beyond ensuring these facilities don’t draw excessive electricity from the grid, relying on renewable energy has prevented data centers from increasing America’s greenhouse gas emissions.

Major tech companies like Google, Apple, and OpenAI cumulatively consume enough energy to power small nations and they would have had a notable effect on American emissions if their increasingly energy-intensive data centers were powered by fossil fuels.

If the Trump administration doesn’t retain clean energy incentive rules, the development and rollout of new renewable energy capacity will slow down significantly due to the high cost of launching renewable energy projects, forcing data centers to power their operations using fossil fuel-fired energy.

According to a Data Center Coalition letter, “regulatory friction” has the potential to slow new renewable energy deployment and affect the ability of data centers to meet their surging electricity needs. The data center industry has been reliant on clean energy incentive rules to power operations using renewable sources, and according to projections from advisory company Clean Energy Associates, implementing stricter rules could cost the U.S. around 60 gigawatts of planned solar energy capacity.

This dispute highlights a fundamental tension in current energy policy. While the Trump administration prioritizes reducing government subsidies and supporting traditional energy sectors, the rapidly growing data center industry argues that renewable energy incentives have become essential infrastructure for America’s technological competitiveness.

The outcome of this debate could determine whether the U.S. maintains its leadership in AI and cloud computing or cedes ground to international competitors who have made substantial investments in clean energy-powered data infrastructure.

While this letter focuses on data centers, entities like Bollinger Innovations, Inc. (NASDAQ: BINI) that make electric vehicles are also having to figure out how they will maintain their momentum after the federal administration made a policy reversal that ended incentives for the buyers of these new energy vehicles designed to reduce the emissions from the auto sector.

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