Key Takeaways
- •Marsden Hanna (Head of Energy and Sustainability Policy, Google) announced projected 2026 infrastructure investments of up to $185 billion while identifying grid interconnection delays as the primary obstacle to AI development.
- •Eric Masanet (Professor, University of California, Santa Barbara) warned that data centers represent a unique "blind spot" in federal data collection, leaving policymakers without verified information on energy and water consumption.
- •Rep. Emilia Sykes (D, OH-13) expressed concern over rising utility bills for residents, while Hanna testified that Google utilizes "capacity commitment frameworks" to ensure the company covers its own infrastructure costs.
- •Rep. Richard McCormick (R, GA-7) advocated for streamlining NEPA reviews to counter China’s rapid infrastructure build-out, whereas Rep. Zoe Lofgren (D, CA-18) prioritized public transparency to maintain the "social license" for data centers.
- •Lawmakers are considering the SPEED Act and DATA Act to accelerate transmission projects and enable off-grid power solutions, aiming to secure the energy supply necessary for American AI leadership.
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Hearing Analysis
Overview
The House Science, Space, and Technology Subcommittee on Investigations and Oversight held a hearing on February 24, 2026, titled "Powering America's AI Future: Assessing Policy Options to Increase Data Center Infrastructure." Chaired by Rep. Richard McCormick (R-GA-7), the hearing examined the critical infrastructure requirements necessary to sustain the United States' leadership in artificial intelligence (AI). The discussion focused on the massive energy and water demands of modern data centers, the regulatory hurdles slowing the deployment of new power sources, and the technological innovations required to improve efficiency.
The hearing was convened to address the growing strain that AI-driven data centers place on the national power grid and water resources. As AI models become more complex, the demand for high-density computing power—and the infrastructure to support it—has surged. The subcommittee sought to evaluate policy options that could streamline the construction of data centers and the energy projects required to power them, while also considering environmental sustainability and grid reliability.
Policy Proposals
The subcommittee heard from three witnesses representing academia, industry, and public policy. Dr. Eric Masanet, a professor at the University of California, Santa Barbara (UCSB), provided a historical perspective on data center efficiency. He noted that while hardware gains have traditionally decoupled energy use from data growth, the shift toward specialized hardware like GPUs for AI workloads is creating unprecedented power demands. He emphasized the need for advanced cooling techniques and software optimization, such as "pruning" and "quantization," to reduce the energy footprint of AI models. Mr. Marsden Hanna, Head of Energy and Sustainability Policy at Google LLC, detailed the company’s commitment to operating on 24/7 carbon-free energy by 2030. He identified the "interconnection queue" as a primary bottleneck, noting that hundreds of gigawatts of clean energy projects are stalled awaiting grid access. Ms. Paige Lambermont, a Research Fellow at the Competitive Enterprise Institute (CEI), argued that the primary challenge is a lack of reliable baseload power. She criticized policies that lead to the premature retirement of coal and natural gas plants and advocated for a market-driven approach. She specifically called for the reform of the National Environmental Policy Act (NEPA) and the Nuclear Regulatory Commission’s (NRC) licensing processes to facilitate the deployment of Small Modular Reactors (SMRs).
Several specific policy interventions were discussed. Witnesses and members discussed streamlining the permitting process under NEPA to reduce the multi-year delays for transmission lines and energy projects. Reforming the NRC to create a predictable pathway for SMRs was a major theme, with references to the implementation of the ADVANCE Act. Proposals were also made to grant the Federal Energy Regulatory Commission (FERC) more authority to streamline the interconnection process and incentivize regional transmission planning. Rep. Luz Rivas (D-CA-29) and Dr. Masanet discussed the United States Department of Energy (DOE) potentially creating "data center ready" zones and providing technical assistance to states.
Overview
The hearing highlighted significant impacts on the technology and energy sectors. Data center operators face long lead times for critical equipment like large power transformers, which Ms. Lambermont noted can now take two to three years to acquire. The utility sector is also affected, as state commissions must balance the infrastructure costs of data centers against consumer electricity rates. The nuclear industry, particularly developers of SMRs, was identified as a key partner for future data center growth.
Key Testimony
The organizations identified in the hearing were discussed in the following contexts: Google LLC was cited as a primary example of a large-scale data center operator, with its witness detailing its 24/7 carbon-free energy goals. The Subcommittee on Investigations and Oversight organized the hearing to investigate infrastructure barriers. The Nuclear Regulatory Commission (NRC) was criticized for a slow licensing process that hinders the deployment of SMRs. The United States Department of Energy (DOE) was referenced for its role in foundational research through National Laboratories and its potential to guide state-level data center planning. The Federal Energy Regulatory Commission (FERC) was mentioned regarding its recent orders on interconnection reform. The Competitive Enterprise Institute (CEI) was represented by Ms. Lambermont, who advocated for deregulation. The People's Republic of China (China) was cited by Rep. Darrell Issa (R-CA-48) as the primary competitor in the AI race. The United States National Laboratories were praised for research on grid operations. The University of California, Santa Barbara (UCSB) provided academic expertise on sustainability science through Dr. Masanet. The Committee on Science, Space, and Technology is the parent committee of the subcommittee.
Overview
There was a bipartisan consensus that the U.S. must lead in AI, but parties diverged on energy strategy. Republicans, including Rep. Pat Harrigan (R-NC-10) and Rep. Issa, focused on deregulation and maintaining fossil fuel baseloads. Democrats, led by Ranking Member Emilia Sykes (D-OH-13) and Rep. Suzanne Bonamici (D-OR-1), emphasized renewable energy, water stewardship, and e-waste. Notable exchanges included Rep. Issa questioning if the U.S. could afford a 10-year regulatory timeline for nuclear power while competing with China, and Rep. Daniel Webster (R-FL-11) raising concerns about consumer electricity rates. While no specific deadlines were set, Chairman McCormick indicated that the subcommittee would continue to monitor the implementation of the ADVANCE Act and look for ways to unleash private sector investment.
Transcript
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