Marketplace Tech The little-known regulatory bodies that can make or break AI data centers
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Dec 11, 2025 Scott Brennan, Director of the Center on Technology Policy at NYU, dives into the pivotal role of public utilities commissions (PUCs) in the AI data center boom. He discusses how PUCs regulate power and infrastructure planning essential for these centers. Brennan highlights community concerns like environmental impacts and rising energy costs. He urges the AI policy community to involve PUCs in discussions, as their decisions are critical for balancing AI growth and grid sustainability.
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PUCs Are Hidden Gatekeepers For AI Data Centers
- Public utilities commissions (PUCs) control key decisions that enable AI data centers by regulating power and infrastructure.
- Scott Brennan highlights PUCs as crucial but often overlooked actors in the AI economy.
PUC Decisions Can Make Or Break Projects
- PUCs influence rates, permitting, and planning, which can determine whether data centers can connect to the grid.
- Brennan explains that PUC approvals can effectively decide if large data centers can be built at all.
Public Pushback Is Shaping Policy
- Public concern and political pushback center on grid stress, environmental harm, and higher residential bills from data centers.
- Brennan notes this opposition is growing into organized advocacy and electoral issues, like in New Jersey.