Former Officials Urge Congress to Pass Energy Reform
A new bill seeks to streamline permitting to address delays affecting U.S. AI data center expansion.
Updated on Oct. 20, 2026 in Data Centers

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Should the U.S. relax environmental regulations to speed up the construction of power grid infrastructure?
Former officials from three administrations are pressing congressional leaders to reform energy permitting through the Bipartisan American Affordability and Jobs Act of 2026. The proposed legislation aims to accelerate critical energy infrastructure to support the rapid growth of AI data centers.
Why it matters
Proponents argue that current bureaucratic delays hamper U.S. competitiveness in the AI and semiconductor industries compared to China. Conversely, opponents fear that streamlining these processes could undermine essential environmental safeguards.
Investment bank Bernstein estimates only 35% of U.S. data center projects will materialize, while 47 projects were delayed or withdrawn in 2026. Data centers typically take 2-3 years to build, compared to 4-8 years for the necessary transmission grids.
The players
Bernstein
This investment bank provides research and financial analysis on global energy and technology market trends.
The details
The Bipartisan American Affordability and Jobs Act of 2026 would require AI data center operators to cover the costs of new transmission infrastructure. This bill responds to a broader trend where roughly 20% of global data center projects are currently facing significant delays.
Timeline
September 30, 2026: The Bipartisan American Affordability and Jobs Act is introduced.
October 13, 2026: 185 advocacy groups submit a letter opposing the proposed legislation.
October 18, 2026: Regulatory data confirms 47 data center projects have been delayed or withdrawn.
October 20, 2026: Former officials from three presidential administrations issue their letter to Congress.
The Tech Race
This legislation represents a critical effort to accelerate U.S. energy grid expansion to keep pace with the massive power demands of AI computing. It marks a direct policy response to the competitive pressure of maintaining dominance in semiconductors and AI against global rivals like China.
The passage of this bill could accelerate the deployment of new AI technologies by ensuring sufficient power availability for domestic data processing. However, residents near potential transmission sites may face new construction projects as the industry works to resolve current grid capacity bottlenecks.
The takeaway
Reliable access to power is becoming the primary limiting factor for the next generation of American artificial intelligence. Stakeholders should monitor upcoming congressional markups to see how the bill balances infrastructure speed with environmental oversight.
Further reading
Learn more about how infrastructure demands influence the sector on the Data Centers page.
Live Poll
Should the U.S. relax environmental regulations to speed up the construction of power grid infrastructure?










