Sen. John Kennedy (R-La.) criticized the rapid expansion of AI data centers, arguing that technology companies should shoulder more of the environmental, energy and financial costs associated with them.
Kennedy Calls For AI Transparency
On Tuesday, Kennedy wrote on X while sharing a clip from a Meet the Press interview, "AI can make our lives better—but not if data centers waste our water, increase our electricity bills and take our tax dollars. Use less water. Provide your own energy."
He added, "Stop demanding taxpayer subsidies. Level with the American people about what AI means."
Kennedy Targets AI Data Center Costs
In the interview, Kennedy said AI could regain momentum if data-center operators addressed several concerns.
"First, they’re going to have to stop using so much water, go to a closed-loop system," Kennedy said, calling for greater water efficiency in cooling systems.
He also demanded that data centers "provide their own energy" and criticized the appearance of some facilities, saying their buildings looked like "a broken arm with the bones sticking out."
Kennedy further took aim at government incentives for the industry.
"They’re all rich," he said, arguing that AI companies should stop seeking extensive tax breaks and subsidies from states.
He also urged the industry to speak more openly about AI’s potential consequences, including its impact on employment and public safety.
AI Data Centers Face Growing Scrutiny
Big Tech is facing pushback over data center tax breaks amid the AI boom. Some state lawmakers, including Ohio State Rep. Tristan Rader (D-Lakewood), want to repeal the sales-tax exemption and renegotiate previous deals with big tech companies like Amazon.com Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META), and Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, which secured exemptions for data centers for decades by inking contracts with the state.
In May, Sen. Elizabeth Warren (D-Mass.) warned that massive power demand could increase electricity costs for American households. She argued that utility companies are shifting infrastructure upgrade costs onto consumers instead of Big Tech companies.
Rep. Ro Khanna (D-Calif.) had warned that the rapid expansion of AI data centers was increasing environmental and infrastructure pressures on local communities.
He said his proposed Data Center Bill of Rights would give communities more power to oppose projects and restrict them in residential areas and farmland.
U.N. Secretary-General António Guterres called on major AI companies to publicly disclose their full environmental impact, warning that rising demand for land, water and electricity could create hidden costs for vulnerable communities.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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