House Natural Resources hearing divides on using federal lands and coal to power AI and data centers

At a House Natural Resources subcommittee hearing, witnesses and members debated whether federal lands should be used to supply the large amounts of electricity that artificial intelligence and large-scale data centers may require, with industry witnesses advocating for expanded federal coal leasing and permitting reform and conservation groups warning of pollution, water use and threats to national parks.

The debate opened with Chairman Gosar stressing the need to "unleash American energy independence" to keep the United States competitive in AI and technology. "AI is the next foundational layer," said Greg Osuri, founder and CEO of Overclock Labs/Akash Network, arguing that U.S. leadership requires expanded power availability and flexible siting for distributed computing.

The hearing highlighted sharply different policy prescriptions. Emily Arthur, chief executive of the American Coal Council, urged greater access to federal coal and lower federal royalty rates, arguing federal coal provides "the consistent energy supply necessary to maintain the high performance of AI initiatives." Kyle Hart, Mid-Atlantic program manager for the National Parks Conservation Association, said data centers pose concrete threats to parks and regional resources, citing proposals near Prince William Forest Park and Manassas National Battlefield Park and warning about water and transmission impacts in Virginia's data-center corridor.

Ranking Member Dexter pressed witnesses on public-health and community impacts, citing research on pollution and diesel generator use tied to data centers. "Because fossil fuel companies and some in big tech want subsidies," Dexter said, "they want public land, they want exemptions from our bedrock environmental protections." Representative Huffman, the ranking member of the full committee, also cautioned that emergency framing risked masking other priorities, saying the administration is "hollowing out the very workforce that we count on to prevent and respond to wildfires."

Witnesses described a range of technical and policy responses. Osuri and others advocated decentralized, "edge" cloud approaches that would distribute compute and can pair with local renewables. Paige Lambert of the Competitive Enterprise Institute argued for permitting reforms, including changes to the National Environmental Policy Act (NEPA) and faster interconnection, to ease construction of new power capacity. Hart recommended prioritizing redevelopment of already-disturbed private sites rather than siting industrial campuses on protected federal lands.

Members and witnesses repeatedly raised the question of who bears cost risk. Hart warned that if utilities build new generation and the projected data-center load does not materialize, ratepayers could face higher bills or utilities could face solvency risks. Panelists and members discussed colocation and behind-the-meter power purchase models—where data-center operators contract directly for generation—as a way to reduce risk to other customers.

Panel testimony included multiple data points cited by witnesses: a Lawrence Berkeley National Laboratory estimate that data centers accounted for about 4.4% of U.S. electricity use in 2023, with some projections rising toward 6.7%–12% by 2028; industry witnesses and members cited Bureau of Land Management figures on federal coal production and royalties and a range of industry-led emissions-reduction technologies at specific plants.

No formal votes or policy changes occurred at the hearing. The subcommittee chair authorized the hearing record to remain open for written questions; staff instructed members to submit questions to the subcommittee clerk by 5 p.m. on Friday, May 23, and the hearing record will be held open for 10 business days for responses.

The hearing underscored deep policy tensions: proponents pressed for faster access to energy on federal lands and regulatory reform to speed new generation, while conservation groups and some Democrats urged stronger environmental review, protections for parks and communities, and caution about long-term health and fiscal risks.

The subcommittee will accept written follow-up from members and witnesses as it considers legislative and oversight options.