House subcommittee presses for faster permitting, grid upgrades to meet AI data center demand

At a hearing of the House Oversight and Reform subcommittee on economic growth, energy policy, and regulatory affairs in the Rayburn House Office Building, witnesses and members warned that U.S. energy permitting and grid interconnection timelines threaten expansion of the data centers that power artificial intelligence and urged congressional action.

The concerns centered on three choke points: lengthy permitting and litigation that delay power generation and transmission, a shortage of electrical equipment and transformers, and a workforce and manufacturing base that many witnesses said must expand rapidly to meet estimated demand for AI workloads.

Neil Chilson, head of AI policy at the Abundance Institute, told the panel that software rules and energy rules must both be fixed to sustain U.S. AI leadership and described the problems as a “launchpad” that Congress must clear. “To boost our energy infrastructure, Congress should streamline permitting processes and constrain counterproductive litigation, and it should direct federal…