Senators from states with planned data centers used a Sept. 17 hearing to press OSTP Director Michael Kratios on infrastructure needs and regional environmental impacts tied to AI data centers.

Senator Baldwin raised concerns about "millions of gallons" of daily water use at data centers near the Great Lakes and asked how the administration will amend Clean Water Act regulations while protecting groundwater. Kratios responded that the administration’s "North Star" is clean air and water and that regulatory changes would proceed through notice and comment. "I've gotten to know Administrator Zeldin ... the commitment the EPA has in ensuring ... adhere to the highest standards," Kratios said.

Several senators, including Cantwell and Rosen, emphasized power and fiber as critical elements for AI infrastructure. Kratios said permitting reform is essential and that power availability — including co‑located generation and behind‑the‑meter solutions — matters for data center siting. He told the committee the administration views fiber as "a very important component" of the interconnect system and that NTIA and the Commerce Department are engaged on connectivity issues.

Senators also raised affordability concerns. Senator Markey cited an analysis alleging household electricity bills could rise as much as 25% over the next four years because of data center demand; Kratios said he was not familiar with that figure and reiterated the administration’s stated commitment to grow power generation and lower energy costs for consumers. Multiple senators urged the administration to move quickly on permitting and energy policy so data center growth would not outpace available clean, affordable electricity.

On fiber buildout, Senator Rosen described industry projections that fiber miles will need to increase substantially to meet AI demand and asked whether federal efforts should prioritize fiber expansions. Kratios agreed that fiber is critical and noted NTIA and Commerce engagement, while also saying there are multiple technologies to connect communities.

Kratios did not provide new regulations at the hearing but reiterated that agencies will follow notice‑and‑comment procedures on regulatory changes and that OSTP will coordinate with Commerce, EPA, DOE and NTIA on infrastructure and environmental protections.