Bernie Sanders, Ro Khanna Warn Data Center Boom Is Driving New Gas Power Buildout
Bernie Sanders and Ro Khanna on AI, Data Centers and Energy
At a Stanford forum, Bernie Sanders and Ro Khanna reframed the expansion of compute infrastructure as a national policy problem, not merely a corporate real‑estate trend.
They argued that hyperscale computing demand is reshaping land markets and the electricity system, with private capital buying farm acres and utilities racing to meet concentrated load growth.
Recent transactions underline the stakes: multimillion‑dollar farmland acquisitions and colocated power projects are emerging where previously only agriculture existed.
Regulators recently cleared a 7.65 GW gas‑fired plant intended to feed new compute hubs in the Permian Basin — a development that signals a preference for dedicated fossil generation to guarantee latency and uptime for latency‑sensitive workloads.
Public documents and watchdog research list about 158 proposed gas projects in Texas and estimate those builds could produce roughly 237 million tons of greenhouse gases per year if realized.
At a national level, analysts track roughly 252 GW of methane‑fired capacity in development tied to compute demand, shifting the U.S. energy mix trajectory away from earlier expectations that growth would be solved primarily through renewables plus storage.
But that pipeline exists alongside substantial signs of resistance: industry trackers and reporting attribute about $64 billion of planned U.S. data‑center projects to delays or cancellations tied to community pushback, permitting pauses, and stricter local rules — a countervailing force that complicates straightforward extrapolations from proposal lists to realized capacity and emissions.
Local opposition has crystallized in states such as Texas, Georgia, Illinois and Mississippi, where municipalities are pausing approvals, tightening interconnection and zoning rules, or demanding developers fund upgrades or build substations directly.
Economic signals are already visible: analysts warn that rapid load growth has contributed to higher wholesale and retail power prices in some markets, and utilities are increasingly conditioning large interconnections on defined upgrades, staged energization and developer funding commitments.
Developers are responding with mitigation packages — from building substations and committing to storage and demand‑response, to bespoke cost‑sharing agreements — while some former crypto‑mining campuses have been repurposed for GPU‑dense AI workloads, changing absorption pathways for capacity.
Policy responses vary and sometimes conflict: federal directives seek to streamline multi‑jurisdictional permitting to preserve competitiveness, even as many localities consider moratoria or more aggressive siting controls to protect residents, air quality and municipal finances.
Sanders urged a pause on expansion to allow for public debate; Khanna emphasised mechanisms that make operators internalize the infrastructure footprint they impose.
The short‑term choices firms make — speed via private gas plants versus slower decarbonized integration — will determine local air quality, utility finances and national emissions growth for years, and they will shape whether investment consolidates in permissive jurisdictions or is dispersed into smaller, more distributed designs.
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