Empowering Rural America through Investment in Innovation (House Small Business subcommittee hearing, January 21, 2026)
Summary
Transcript of the House Small Business Subcommittee on Rural Development, Energy, and Supply Chains hearing Empowering Rural America through Investment in Innovation, on January 21, 2026, published as Small Business Committee Document Number 119–028. Representatives Jake Ellzey and Kelly Morrison gave opening statements. Witnesses were Chris Crosby of Compass Datacenters, Kirk Offel of Overwatch Mission Critical, and Dr. Nicol Turner Lee of the Brookings Institution's Center for Technology Innovation. The appendix carries written questions from Representative Morrison with answers, and letters from the Fiber Broadband Association, Lazard on the levelized cost of energy, NextEra Energy, Loudoun County and Food & Water Watch.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“Empowering Rural America through Investment in Innovation (House Small Business subcommittee hearing, January 21, 2026).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/empowering-rural-america-through-investment-in-innovation-house-small-dd5fe4f884/
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EMPOWERING RURAL AMERICA THROUGH
INVESTMENT IN INNOVATION
HEARING
BEFORE THE
SUBCOMMITTEE ON RURAL
DEVELOPMENT, ENERGY, AND SUPPLY
CHAINS
OF THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED NINETEENTH CONGRESS
SECOND SESSION
HEARING HELD
JANUARY 21, 2026
Small Business Committee Document Number 119–028
Available via the GPO Website: www.govinfo.gov
U.S. GOVERNMENT PUBLISHING OFFICE
62–603 WASHINGTON : 2026
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HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
JAKE ELLZEY, Texas
MARK ALFORD, Missouri
NICK LALOTA, New York
BRAD FINSTAD, Minnesota
TONY WIED, Wisconsin
ROB BRESNAHAN, Pennsylvania
BRIAN JACK, Georgia
TROY DOWNING, Montana
KIMBERLYN KING-HINDS, Northern Marina Islands
DEREK SCHMIDT, Kansas
JIMMY PATRONIS, Florida
NYDIA VELÁZQUEZ, New York, Ranking Member
MORGAN MCGARVEY, Kentucky
HILLARY SCHOLTEN, Michigan
LAMONICA MCIVER, New Jersey
GIL CISNEROS, California
KELLY MORRISON, Minnesota
GEORGE LATIMER, New York
DEREK TRAN, California
LATEEFAH SIMON, California
JOHNNY OLSZEWSKI, Maryland
HERB CONAWAY, New Jersey
MAGGIE GOODLANDER, New Hampshire
LAUREN HOLMES, Majority Staff Director
MELISSA JUNG, Minority Staff Director
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CONTENTS
OPENING STATEMENTS
Page
Hon. Jake Ellzey ...................................................................................................... 1
Hon. Kelly Morrison ................................................................................................ 2
WITNESSES
Mr. Chris Crosby, Chief Executive Officer, Compass Datacenters, Dallas,
TX .......................................................................................................................... 6
Mr. Kirk Offel, Founder and Chief Executive Officer, Overwatch Mission
Critical, Austin, TX .............................................................................................. 8
Dr. Nicol Turner Lee, Senior Fellow, Governance Studies and Director, Center
for Technology Innovation, Brookings Institution, Washington, DC ............... 10
APPENDIX
Prepared Statements:
Mr. Chris Crosby, Chief Executive Officer, Compass Datacenters, Dallas,
TX ................................................................................................................... 31
Mr. Kirk Offel, Founder and Chief Executive Officer, Overwatch Mission
Critical, Austin, TX ....................................................................................... 36
Dr. Nicol Turner Lee, Senior Fellow, Governance Studies and Director,
Center for Technology Innovation, Brookings Institution, Washington,
DC .................................................................................................................. 41
Questions and Answers for the Record:
Questions from Hon. Morrison to Dr. Nicol Turner Lee with attachments . 61
Additional Material for the Record:
Fiber Broadband Association (FBA) Letter .................................................... 124
Lazard LCOE (Levelized Cost of Energy) Letter ........................................... 127
NextEra Energy Letter .................................................................................... 175
Loudoun County Letter .................................................................................... 206
Food & Water Watch Letter ............................................................................ 210
Mike Turner Letter #1 ..................................................................................... 217
Mike Turner Letter #2 ..................................................................................... 258
American Sustainable Business Network (ASBN) Letter ............................. 259
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EMPOWERING RURAL AMERICA THROUGH
INVESTMENT IN INNOVATION
WEDNESDAY, JANUARY 21, 2026
HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
SUBCOMMITTEE ON RURAL DEVELOPMENT,
ENERGY, AND SUPPLY CHAINS,
Washington, DC.
The Subcommittee met, pursuant to call, at 10:03 a.m., in Room
2360, Rayburn House Office Building, Hon. Jake Ellzey [chairman
of the Subcommittee] presiding.
Present: Representatives Ellzey, Finstad, Wied, Schmidt, Wil-
liams, Morrison, Scholten, Olszewski, and Goodlander.
Chairman ELLZEY. Good morning. Welcome to the Committee
on Small Business, Subcommittee on Rural Development, Energy,
and Supply Chains.
I would like to recognize Chairman Roger Williams for the pray-
er and the pledge.
Mr. WILLIAMS. Please stand.
I pledge allegiance to the Flag of the United States of America
and to the Republic for which it stands, one nation, under God, in-
divisible, with liberty and justice for all.
Would you please bow your head?
Heavenly Father, God of all people, thank you for allowing us to
be here today to share wonderful ideas for the future of this great
country and the people that care about it so much.
We also care about you, and that is why we strive every day to
walk in your light and not in your shadow—in our shadow.
In your name we pray. Amen.
Chairman ELLZEY. Good morning. I will now call the Sub-
committee on Rural Development, Energy, and Supply Chains to
order.
Without objection, the Chair is authorized to declare a recess of
the Committee at any time.
I now recognize myself for my opening statement.
So welcome to today’s hearing, ‘‘Empowering Rural America
Through Investment in Innovation.’’
I want to say thanks to our witnesses for showing up today, trav-
eling here at their own expense to spend some time with us, and
your expertise.
So, as the demand for AI accelerates, America’s digital infra-
structure is rapidly expanding into rural communities. This infra-
structure consists of data centers being built far beyond traditional
tech hubs, with many investments being made in rural areas, in-
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cluding in my district, in Ellis County. Our rural communities and
small businesses are at the center of America’s AI-driven growth.
Texas is leading the charge in data-center development because
of our pro-growth, pro-energy, and low-regulatory environment that
has minimized the hindrance of red tape. We have placed a strong
focus on developing the workforce for high-paying, new-collar jobs,
and data companies have recognized those benefits.
The economic ripple effect from data centers can reinvigorate
rural communities like mine by creating high-paying trade careers
and supporting long-term economic activity in rural small busi-
nesses. For every direct job created at a data center, up to seven
jobs are supported in the surrounding community.
Small businesses are supplying, maintaining, and supporting
these facilities. From construction to infrastructure upgrades, data
centers open doors for main street entrepreneurs and trade work-
ers to be a part of the next generation of technical advances.
Meeting the workforce needs of data centers across the country
will take a whole-of-community approach to attract and train the
skilled workers needed to succeed. Many of our military veterans
who return to civilian life already possess the skills required for
this industry.
As a vet myself, I was proud to co-lead the bill that made the
Boots to Business training program permanent, alongside Chair-
man Williams and Representatives McGarvey and Schneider.
Through this effort, our returning service members can be trained
to fully utilize their military skills in entrepreneurship opportuni-
ties, including those offered by the data-center industry. This bill
was passed in the fiscal year 2025 NDAA and will continue to be
a vital tool in meeting our workforce needs.
Building out this workforce is a crucial step in securing Amer-
ica’s energy dominance and supporting our national security. At
the same time, industry leaders, local partners, and educational in-
stitutions are already stepping up with investments in advanced
energy solutions that not only strengthen local infrastructure but
keep us competitive with the AI race with China.
I look forward to hearing from today’s witnesses about how data
centers can support local communities, strengthen the small-busi-
ness ecosystem, and help build a new middle class in rural areas
across the country.
And, with that, I now recognize the Ranking Member, Represent-
ative Morrison, for her opening remarks.
Ms. MORRISON. Thank you, Mr. Chairman.
And thank you to the witnesses for being here.
Emerging technologies like AI and blockchains are redefining
how people around the world live and work. These technologies are
run on computers, but most computers don’t have the processing
power or compute needed to run them quickly enough for main-
stream use. For advanced AI models to be developed or operated
at a suitable speed, they must be hosted by a massive group of
computers that collectively pool their compute, found only in data
centers.
The growth of AI, both in use and in development, has spurred
an explosion in data-center construction, which has caused a huge
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rise in demand for the electricity they need to function as well as
for water used by some data centers’ liquid cooling systems.
New data centers can bring benefits, like tax revenue and invest-
ment, to rural areas that sorely need them. But, as we point out
in most hearings, it is important to think about the whole picture—
the benefits, the costs, who receives those benefits, and who bears
those costs.
The recent data-center boom presents numerous challenges.
First, data centers are causing residential customers’ electric
bills to rise by increasing electricity demand and straining the elec-
tric grid.
Second, data centers draw on supplies of clean, drinkable fresh-
water, stressing local water systems, sometimes in areas with al-
ready-limited water availability and infrastructure.
Third, computer-part-makers, responding to AI developers’ vast
capital, are shifting production from consumer parts to AI products,
making computers and smartphones more expensive.
And last but not least, new data centers are directly and indi-
rectly increasing pollution and carbon emissions, posing significant
environmental health risks.
With all that said, these outcomes aren’t foregone conclusions. It
is possible to build more data centers in a way that doesn’t hamper
innovation but also benefits the communities that surround them.
We should be thoughtful and purposeful about the way we are
building data centers.
During the previous administration, Democratic congressional
majorities enacted landmark laws to lower costs for consumers and
small businesses. The Inflation Reduction Act created tax incen-
tives to make energy cheaper and cleaner. The Bipartisan Infra-
structure Law invested hundreds of billions of dollars in our clean
water and broadband internet. And the CHIPS Act funds and
incentivizes domestic computer manufacturing, stabilizing and low-
ering computer prices.
H.R. 1 slashed those IRA tax credits, and the Trump administra-
tion is doing everything in its power to halt the permitting of clean-
energy products—the cheapest and fastest forms of energy to build.
He has also diverted billions in broadband funding to Elon Musk’s
company Starlink for unreliable satellite connections in rural
areas. And he proposed cutting rural water and wastewater grants
by $154 million this year and repealing the CHIPS Act.
All together, President Trump is enabling data centers to make
America’s affordability crisis far worse.
Still, we can salvage the situation. We can follow through on the
farsighted investments made by the previous administration and
put in place commonsense guardrails that shield American con-
sumers and small businesses from the excesses of the data-center
boom.
I hope to have a clear-eyed and productive discussion about how
communities, especially rural ones, can maximize the benefits and
minimize the costs of the data-center projects popping up across
the nation. Affordability for Americans depends on it.
With that, Mr. Chairman, I request unanimous consent to insert
into the record the written statement of the Loudoun County Vir-
ginia Board of Supervisors Vice Chair, Mike Turner.
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And I thank the witnesses for being here.
And I yield back.
Chairman ELLZEY. Without objection.
And I will now introduce our witnesses—hmm? Is she here?
I am going to pay for this later at the baseball field.
Thank you. I now recognize the Chairman of the full Committee,
Chairman Williams, for an opening statement.
Mr. WILLIAMS. That is a good recovery, Chairman. Thank you.
Chairman ELLZEY. Thank you, sir.
Mr. WILLIAMS. Thank you, Chairman Ellzey, for holding this
very timely hearing.
And thank you to all the witnesses for being here today and join-
ing us with this discussion on the impact of the data-center indus-
try on rural communities and small businesses.
The data-center industry is growing rapidly, and Texas is right
in the center of the action. We are witnessing the economic and in-
dustrial revival, with these businesses driving high demand for
tradeskill workers, and technical and trades jobs will be the back-
bone of the renewed American middle class.
As Chairman Ellzey has explained, veterans come ready with
many high-demand skills that the data-center industry needs. By
making the SBA’s Boots to Business program permanent last Con-
gress, Chairman Ellzey, myself, and other colleagues on both sides
of the aisle are arming our veterans with the entrepreneurial skills
and knowledge necessary to step into critical roles and leadership,
not only in the data-center industry but across any industry.
One of my highest priorities is to encourage more young people
to pursue a career in technical education, also known as CTE. And
in pursuit of that goal, I have introduced two bipartisan bills in
Congress—H.R. 1641, the Student Debt Alternative and CTE
Awareness Act; and H.R. 1642, the Connecting Small Businesses
with Career and Technical Education Graduates Act of 2025. These
bills promote CTE programs and help graduates of these programs
to find jobs with small businesses.
Now, career and technical education is critical to meeting the
growing demand for tradeskills professionals and building the fu-
ture of the American workforce. Ambitious and entrepreneurial
electricians, HVAC technicians, and plumbers are finding an indus-
try overflowing with opportunity in rural America. Data centers
cannot operate without small businesses to build and maintain
them.
And, of course, every opportunity comes with certain challenges.
We look forward to discussing them with our witnesses today, as
we continue exploring the impact of data centers across our com-
munities.
I want to thank again our witnesses again for joining us today
and for your investment in the rural communities of Texas.
With that, I yield back.
Chairman ELLZEY. Thank you, Mr. Chairman. Please, no wind
sprints come March.
And I would like to add before we delve into our witnesses that,
as we talk about our veterans—thanks for the kind words, Mr.
Chairman—that our veterans have the discipline to be trained to
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do anything, and they have the drive to do everything. So they are
going to be an essential part of this.
Our first witness today is Mr. Chris Crosby, the chief executive
officer of Compass Datacenters in Dallas, Texas.
Mr. Crosby founded the company in 2011 after years of working
at the intersection of technology and real estate development, fo-
cusing on delivering scalable, customizable, and sustainable data-
center infrastructure.
Since founding Compass, Mr. Crosby has led the company’s
growth, from completing its first 1.2-megawatt data center in 2012
to developing campus-scale facilities serving hyperscale customers
worldwide.
Under his leadership, Compass has earned recognition as one of
the fastest-growing companies in the country and has become a
leader in sustainability and long-term infrastructure development
within the data-center industry.
Mr. Crosby holds a Bachelor of Science in computer science from
UTA—UT Austin, for those not in the Sixth District.
Thank you for joining us.
Our next witness is Mr. Kirk Offel. Mr. Offel is founder and chief
executive officer of Overwatch Mission Critical, a strategic data-
center consulting firm based in Austin, Texas.
Mr. Offel has had two decades of industry experience, having
worked in executive roles with Fortune 1,000 companies and major
data-center providers worldwide. His career includes work with
Medtronic, Eaton Corporation, Hewlett-Packard’s Technology Serv-
ices Consulting practice, and others.
In addition to his executive pursuits, Mr. Offel is the founder of
the Data Center Austin Conference and the host of the ‘‘Data Cen-
ter Revolution Podcast.’’
He is a U.S. Navy veteran, having served aboard a nuclear fast-
attack submarine, and was recognized as a Member of the class of
2010 ‘‘Military Top 40 Under 40.’’
And, if I might add, if you are on a fast-attack submarine, you
have gone to Nuclear Power School and you are smarter than ev-
erybody else in the room.
And, clearly, because of that hair, you are a submariner, not a
pilot.
I am looking forward to hearing your testimony.
I now recognize Ranking Member Morrison to briefly introduce
our last witness.
Ms. MORRISON. Thank you, Mr. Chairman.
Dr. Nicol Turner Lee is a senior fellow in governance studies at
the Brookings Institution and the director of its Center for Tech-
nology Innovation.
She is an accomplished tech-policy expert, focusing on equitable
access to and impacts of technology, with three decades of experi-
ence in research and advocacy. Her recent work includes a 2024
book titled ‘‘Digitally Invisible: How the Internet is Creating the
New Underclass’’ and a chapter in ‘‘The Oxford Handbook of AI
Governance.’’
Before her time at Brookings, Dr. Turner Lee was the chief re-
search and policy officer at the Multicultural Media, Telecom, and
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Internet Council and the director of the Media and Technology In-
stitute at the Joint Center for Political and Economic Studies.
She has also served on federal advisory commissions, such as the
Commodity Futures Trading Commission’s Technology Advisory
Committee, the Department of Homeland Security’s AI Safety
Board, and the Federal Communications Commission’s Commu-
nications Equity and Diversity Council.
Dr. Turner Lee holds a B.A. from Colgate University and an
M.A. and Ph.D. from Northwestern University.
She might compete on the smart front here.
Welcome, Dr. Turner Lee.
Chairman ELLZEY. Thank you all for being here.
Before recognizing the witnesses, I want to remind you that you
have 5 minutes. If you go over 5 minutes, I start tapping, and then
I start screaming after that.
I now recognize Mr. Crosby for his 5-minute opening remarks.
STATEMENTS OF CHRIS CROSBY, CHIEF EXECUTIVE OFFICER,
COMPASS DATACENTERS; KIRK OFFEL, FOUNDER AND
CHIEF EXECUTIVE OFFICER, OVERWATCH MISSION CRIT-
ICAL; AND NICOL TURNER LEE, PH.D., SENIOR FELLOW IN
GOVERNANCE STUDIES AND DIRECTOR OF THE CENTER
FOR TECHNOLOGY INNOVATION, BROOKINGS INSTITUTION
STATEMENT OF CHRIS CROSBY
Mr. CROSBY. Thank you, Chairman Ellzey. Thank you, Ranking
Member Morrison and Chairman Williams and distinguished Mem-
bers of the Subcommittee. Thank you for inviting me today to tes-
tify on how investments in digital infrastructure is revitalizing
rural America.
My name is Chris Crosby, and I am the founder and CEO of
Compass Datacenters. After 25 years of working at the intersection
of technology and real estate development, I founded Compass in
2011. We design, build, and operate the customizable, scalable, and
sustainable foundations of the global hyperscale market.
It is vital to distinguish our work from crypto farms or transient
AI factories. We build hyperscale campuses, enduring civic infra-
structure that supports the banking, cloud-computing, AI, and so-
cial connectivity services Americans use every day.
We are in the middle of the most significant economic trans-
formation since electrification. Data centers are the 21st-century
equivalent of the railroads coming. They are now moving beyond
traditional tech corridors into rural communities. They are bring-
ing substantial capital, jobs, and infrastructure investment.
There is an outdated myth that data centers only provide tem-
porary construction jobs. In reality, our campuses are 100-year as-
sets. They are part of the communities that they sit in, and they
are in a state of constant evolution.
In Red Oak, Texas, the Chairman’s district, our investment has
triggered a significant butterfly effect. We provide stable work for
roughly 1,500 construction workers during the decade-long build-
out and anticipate over 400 permanent, high-paying jobs—oper-
ations, maintenance careers, technology careers—on the campus.
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We anchored a new industrial hub by partnering with Schneider
Electric to build a 105,000-square-foot manufacturing facility on
our campus, in the middle of our campus, creating an additional
350 jobs on the campus.
Before our 2021 investment in Red Oak, new sales tax business
permits in the municipality grew at a meager 12 percent annually,
which for north Texas is not doing very good. Since we began con-
struction, that growth rate has surged to 43 percent, compounding.
Data-center campuses function as sustained economic engines,
creating a butterfly effect of new restaurants, retail, housing, and
other developments within the communities. And if you have driv-
en through Red Oak, Texas, you see the bridges and the construc-
tion, the new schools, and everything else that is coming along
with it.
On energy, large data centers serve as anchor tenants for the
grid. Our national grid averages just about 50-percent utilization
throughout the year, so by utilizing this underused capacity, we
help take those fixed costs across more electricity sales and actu-
ally do put pressure down on the rates for families and not small—
and small businesses to pay less.
Let me be very clear on this point: Data centers pay more so that
families and small businesses can pay less. There are scenarios
where we are regulated to not be able to do that, but that is not
for want.
At Compass, we go even further with our ‘‘co-serve’’ model. To
quote John Knight, the assistant director of economic development
in Red Oak, Texas, ‘‘Compass builds redundancy into our grid, sup-
ports our infrastructure. I love what data centers are doing to im-
prove our community’s qualify of life,’’ end quote.
We fund transmission lines, substations, and interconnects
through up-front contributions in aid of construction, also known as
CIAC payments, strengthening the local grid for everybody.
However, outdated regulations still limit our ability to contribute
even more.
We need emissions standards that distinguish the cleaner
hydrotreated vegetable oil, or HVO, that we use—we pay more for
than diesel—from traditional diesel so that we can stabilize the
grid during emergencies without penalty. We don’t want black soot
going in the air for our communities.
We need the EPA to formally classify mandatory grid curtail-
ments as emergencies, allowing us to support the grid, be grid re-
sources during extreme weather events like this coming week,
without risking compliance violations.
And we need regulatory flexibility to allow more proactive pri-
vate funding for long-term grid infrastructure—that is, private
funding for grid infrastructure.
Compass is built to last, which is why we invest deeply in our
people and our communities. We partner with Texas State Tech-
nical College to create a scholarship pathway into high-tech, high-
paying roles that don’t require 4-year degrees. The program is now
scaling nationally. We are in our second cohort.
We also work with veteran-focused organizations like Overwatch
and Salute to place skilled military talent in data-center careers
close to home.
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Environmentally, we preserve local resources by mandating
water-free cooling since 2012 to protect our agricultural water sup-
plies.
In conclusion, Compass does not seek a free ride. We come with
a multigenerational commitment to prosperity in each of our com-
munities, ensuring that the AI revolution empowers every corner
of our nation.
I thank the Committee for the opportunity to testify and for your
leadership on this important topic, and I look forward to answering
your questions.
Chairman ELLZEY. Thank you, Chris.
Now I recognize Mr. Offel for his 5-minute opening remarks.
STATEMENT OF KIRK OFFEL
Mr. OFFEL. Good morning, Mr. Chairman. Thank you. Ranking
Member, Members of the Committee, thank you for the opportunity
to testify today.
As an industry, we did not communicate early enough or often
enough about our data-center plans, and that created avoidable
concerns. We didn’t clearly explain what we were building, why it
mattered, or how communities would benefit, and we relied on the
trust we hadn’t yet earned.
We are fixing it by increasing transparency, tightening our out-
reach, and making sure every community and stakeholder under-
stands the mission, the safeguards, and the benefits. We know
trust is earned, and you will see that reflected in how we engage
moving forward.
My name is Kirk Offel. I am the CEO of Overwatch, and I am
proud to be a Service-Disabled, Veterans-Owned Small Business
(SDVOSB). Before I ever set foot in a data center, I spent five (5)
years in the U.S. Navy, serving aboard the nuclear fast-attack sub-
marine USS Memphis.
That experience taught me something simple: You don’t accom-
plish big missions with big slogans; you accomplish them with
small, highly capable teams who know how to execute.
And that is exactly what is happening in the AI boom today. Let
me be blunt: Small businesses are the backbone of this entire in-
dustry. I am saying the AI boom does not happen without us, pe-
riod.
Today, more than 75 percent of the whole AI infrastructure eco-
system is driven by small businesses. We are the ones building the
AI factories. We are the ones pulling fiber, erecting steel, trenching
conduit, fabricating components, hauling equipment, running logis-
tics, and delivering professional services that keep projects moving.
As our grid gets pushed harder than ever before, it won’t be a
big company flying in from out of State fixing that. It will be a
local electrician, local line crews, local engineering firms, and local
contractors—small businesses that actually understand the com-
munities that they serve.
We are going to see new small businesses pop up in manufac-
turing—equipment rental, transportation, environmental services,
permitting, legal, security, cleaning, maintenance, you name it.
And all the indirect jobs—housing, food, retail, childcare—all grow
because of this work.
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And we have seen this before. Every major leap in American in-
frastructure has had the same outcome: Small businesses become
the biggest winners. They grew with the railroad era. They scaled
during the electrification of America. They expanded through the
construction of the interstate system. And they absolutely exploded
during the automobile revolution. Each of those moments didn’t
just change the country; they created millions of small businesses
that reshaped the American workforce.
And, today, we are living through what I believe is the fifth in-
dustrial revolution—a revolution powered by data, intelligence, and
people who build and sustain the infrastructure behind it. AI fac-
tories are no different. They are simply the 21st-century version of
those earlier transformations, and they will become the next great
engine of American small-business growth.
Let me put some numbers behind that. For every $100 billion we
invest in building digital infrastructure, we get $800 million in
local tax revenue; 500,000 new jobs; $40 billion in labor income;
and that is a $140 billion boost to the U.S. GDP.
Now I want to address the concerns we all hear: energy, water,
environmental impact, and job creation—all valid concerns. They
deserve our attention, and they are beginning to get monitored
very closely. But the answer is not to hit the brakes. The answer
is the same answer we used when we built the railroads, elec-
tricity, cars, and the roads: We govern it, we guide it, and we build
it more responsibly.
People forget this, but the first cars were horribly inefficient,
wildly polluting, incredibly dangerous, and brutal on city infra-
structure. So, what did we do? We built smarter, we built safer, we
set standards, and we improved efficiency.
Progress doesn’t happen because we avoid the challenge; it hap-
pens because we take it head-on. That is the American way.
Today, we have 5,400 data centers in the U.S. That is the most
in the world. Hyperscale capacity has doubled in the last 5 years,
and we are staring down the barrel of $5 trillion in construction
over the next 5 years. The industry is on track to triple by the end
of the decade.
And for the first time ever, we have the ability to retrofit the
past, to take older facilities and make them just as efficient as the
new data centers we build today. AI factories are the most trans-
formational infrastructure America has ever attempted to build.
Henry Ford enabled the movement of people and goods. AI fac-
tories enable the movement of data, intelligence, and services. And
once again they are going to create millions of small-business op-
portunities, just like cars did, just like the railroads did, just like
electricity did.
But here is the part that matters the most, and this is where my
Navy background speaks up: If we don’t build this infrastructure
here, if we don’t scale it and if we don’t support it with American
labor and American small businesses, those jobs and that tech-
nology are going overseas. And they will go to countries who have
worse environmental standards, less transparency, and strategic
interests directly opposing our own. This is not just an economic
issue; this is a national security issue.
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So, to the Committee, I will leave you with a piece of history. En-
ergy has never been a reason for us to stop; it is a reason for Amer-
ica to lead. Growth isn’t a threat; it is an opportunity. And small
businesses, they are not just part of the story; we are the story.
Empower us, and we will build the next generation of American in-
frastructure. Fail to empower small businesses, and we will fall be-
hind nations that would love nothing more than to take our place.
Thank you, and I look forward to your questions.
Chairman ELLZEY. Thank you, Kirk.
Now I recognize Dr. Turner Lee for her 5-minute statement.
STATEMENT OF NICOL TURNER LEE, PH.D.
Ms. TURNER LEE. Chairman Ellzey, Ranking Member Morri-
son, and distinguished Members of the Subcommittee, thank you
for the invitation to testify today.
AI is changing the way we work, how we learn, get well, and
interact online, as well as emboldening other transformative cases,
like speeding up the development of scientific discoveries and bet-
ter evaluating climate impacts.
But not all consumers have full access to AI, especially those
with limited internet access or who lack the digital skills to utilize
it in their lives.
Rural communities, especially small businesses and farms, have
been historically left behind when it comes to technological innova-
tion and can benefit from what AI offers. With vast topography,
rural areas tend to have the land needed to support physical data
centers. Technology can create avenues for economic development
in rural areas that have experienced declines in population and
farming assets as well as insufficient access to high-speed
broadband.
Data centers have gotten increased visibility as economic drivers,
but this will only be the case if they are built in ways that are ad-
ditive to the local community and bring limited harm to residents
and local businesses.
In my testimony, I want to discuss the increasing explosion of
data centers but talk about how they require a national framework
for resources, security, permitting, and community benefit.
State and local leaders, business owners, employees, and resi-
dents should participate in planning and implementation together
with technology companies, big or small.
Communities must be actively involved at the onset of data-cen-
ter development and have transparency to assess the impacts of
electricity, water, noise and light pollution, jobs, land use, tax reve-
nues—all of which I detail in my written statement.
With the various types of facilities, including enterprise,
hyperscale, co-location, and edge, technology companies are invest-
ing in larger facilities for greater computing power. More compute
requires more space, equipment, electricity, and water, resulting in
a set of unknown environmental hazards that we have yet to real-
ize.
Some tech companies are greatly benefiting from the explicit sup-
port of the President right now, whose favorable stance towards
more data centers to compete with China has expedited permitting
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and bypassed environmental remediations as part of the tenets of
the AI Action Plan.
However, the current administration has also threatened to re-
scind federal funding to States if they stand in the way of AI de-
ployments. And just in December, the White House issued an order
making States ineligible for BEAD non-deployment funds if they
threaten such.
Threats to States through moratoriums and lawsuits are counter-
intuitive to the ultimate goal for having data centers in the first
place, leaving communities without agency in conversations involv-
ing not just data centers but broadband in their community.
More importantly, we must listen to communities. Data centers
have been the central focus of some gubernatorial and state legisla-
ture campaigns during recent elections in New Jersey, in Virginia,
and other places, where consumers saw rising electricity rates coin-
cide with unprecedented demand for new data centers.
A middle ground must be met to balance the needs of advanced
technologies with the demands of residents who just seek clarity,
buy-in, and oversight in these data centers that are being built in
their backyard.
Further, communities should not feel the drain of data centers on
their natural and generated resources. And with the environmental
impact still largely unknown, we need to make sure that the
rollbacks that we made in the Biden-Harris administration in
terms of clean and renewable energy sources do not have dispropor-
tional impacts in the future.
What I will also say about job creation: Though we know that the
rate of jobs is temporary and, in some cases, will not scale to the
size of the data center itself, it is important for the rural workforce
to be involved.
Right now, rural workers are lacking in areas of trade as well
as construction. These challenges offer opportunities for govern-
ment agencies, businesses, and local governments to collaborate on
solving those workforce shortages and rooting training in ways that
those people stay in the community and become the pipeline for
rural communities going forward.
Data centers cannot be selective, as well, when it comes to who
works within the facility itself. Small businesses should have the
opportunity to bid on contracts for food services, security, and
maintenance.
And if these jobs are primarily remote, we need to ensure that
broadband is available so that people who live in rural commu-
nities do not have to go to, as I found in my book, local hotels and
50 miles away to just access their jobs.
There must be some foresight, my friends, about the long-term
impact on surrounding communities, the environment, and overall
resilience.
This is especially important as fears over a potential AI bubble
escalate and feed the possibility of stranded assets in communities
that essentially have given the green light to data centers along
with millions of dollars in tax incentives.
Communities should be asking about the plans for stranded or
deserted buildings, how they can be repurposed and better inte-
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grated into the community, or else we are going to find ourselves,
like China, with a lot of idle buildings.
I envelope my remarks around this idea that data centers should
be responsibly and ethically designed and built, and I leave this
Committee with my closing thoughts:
Ensure early collaboration among all the utilities—energy, water,
and telecom, and even real estate.
Develop community benefit agreements that resolve and make
major public concerns around data centers transparent.
Focus on job creation.
Consider smaller data centers when appropriate. They don’t need
to be big.
Create safeguards for communities and allow communities the
opportunity to say no when they want to say no, and they do not
feel that they are involved.
Thank you again to the Members of the Subcommittee, and I
look forward to your questions.
Chairman ELLZEY. Thank you, Doctor.
We will now move to the Member questions under the 5-minute
rule. I will recognize myself for 5 minutes.
Chris, Texas has emerged as a leading State for data-center de-
velopment because it has affordable land, it has plenty of energy,
and it has an understandable and relatively easy regulatory cli-
mate.
What else makes Texas attractive to data centers?
Mr. CROSBY. The growable workforce that comes with it. You
know, as we continue to bring new people into the data-center
space, we call it the new-collar workforce.
The ability to attract employment in Texas is fantastic. And
when we launched our vocational school in conjunction with Texas
State Technical College—I went through the first cohort. You
know, immediately the first class is all hired. The second class is
already pre-hired. That is going on right now. We just—we have a
workforce where we have youth, we have new people coming in.
And in these communities like Red Oak, the commitment and the
partnership with the local community really helps with that front.
You know, that can-do attitude in Texas has been fantastic.
Chairman ELLZEY. Well, if it is predictable, does that reduce
uncertainty for you long-term for these data centers and their suc-
cess?
Mr. CROSBY. That is a great question.
We look at things as—we don’t exit. There is a big difference if
you build to exit versus build to last. You make a lot better deci-
sions, just like if you are going to remodel your home and you build
it to flip it—or, you remodel to flip it versus you remodel to stay
in that home. And that is where a lot of great sustainability deci-
sions get made.
And we view ourselves as 100-year campuses. These facilities
will have multiple refreshes over that timeframe, both from an IT/
technology as well as from a mechanical and electrical plan, and
they are going to be long-term parts of those communities. They
are living, breathing, active machines in those communities.
So it is that—when you have certainty and you know that you
can have that, you can make the multibillion-dollar type of invest-
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ments that we make and look at it in the 40-plus-year horizons
that we look at it from an investment perspective.
Chairman ELLZEY. And you mentioned John Knight. So you
built this data center with the encouragement and the cooperation
and the oversight of the local government, correct?
Mr. CROSBY. That is correct.
Chairman ELLZEY. So they are fully on board with everything
you are doing. This didn’t need to come from Congress; this didn’t
need to come from Austin. They did it themselves, and they know
you are going to be an integral part of the community already,
right?
Mr. CROSBY. That is a huge part of our selection criteria. We
want to go to the places where people are.
I can’t speak for all developers. There is Class A development,
and there is not. But when you are doing the right thing, you want
to put long-term—you don’t want to have people picketing a site
that you are planning to try to get somebody to stay in for 30
years. Who wants to go work in a community like that? We go to
the places where they welcome the investment, they welcome the
transformation of their communities.
And, like I said, I think it is akin to having—you know, the rail-
road was probably pretty loud back in the 1800s, and, you know,
the communities that passed on that, it didn’t work out so well for
them. Those that passed on the Federal Highway System, those
that passed on the international airports in the 1970s, you know,
it did not work out long-term for those communities.
And data centers are that now. We are—AI is like electricity. We
don’t know all the applications that it is going to be used for. It
is a foundational tool, and it is going to continue to create opportu-
nities.
Chairman ELLZEY. Speaking of opportunities, Kirk, tell me
about how veterans meet the threshold for what you are looking for
in these data centers.
Mr. OFFEL. I appreciate the question, Mr. Chairman.
You know, we talk about data centers because it is measured in
mission-critical. Mission-critical means that you could quantify the
downtime in dollars or death behind one (1) second of lost infra-
structure. I would argue that everyone that has put on the uniform
and took the oath has once entered into a mission-critical environ-
ment that isn’t measured in downtime, but it is measured in their
own mortality.
The State of Texas and what Chris was saying and why it is
such a robust State—the sky for the cloud is northern Virginia, but
the home for AI will be Texas. It has more than 200 high-edu-
cational [https://ballotpedia.org/Higher—education—in—Texas—
1993-2016] platforms, 15 military bases, and 4 of the most popu-
lous cities in the United States, not to mention it has more natural
resources than any other State in the Union, including Alaska and
Montana.
So, we have the best access to the biggest workforce. There is a
massive amount of veterans coming out of the military that have
been exposed to the most advanced weapons, machines, and tech-
nology ever built, and the military is best known for being one of
the largest leadership incubators ever built.
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So, we are not only—this industry does not—it is not lacking ge-
nius or intelligence. It does lack leadership. It lacks courage. And
veterans are trained and conditioned and pressure-tested in all
three.
So, I think that veterans have the highest likelihood—I have
three kids that are in college right now, and I tell them that that
college degree is about as useful as a taxi medallion in a few years.
Because you could spend four (4) years in the military and find
yourself with a higher demand of opportunity that has the highest
overall total earning potential versus something that you could find
today going to college.
Chairman ELLZEY. Nailed it. Nailed it.
Mr. OFFEL. Thank you.
Chairman ELLZEY. Okay.
I now recognize Dr. Morrison for 5 minutes of questions.
Ms. MORRISON. Thank you, Mr. Chairman.
Dr. Turner Lee, are data centers being constructed to meet cur-
rent demand or anticipated demand? And if the tech bubble does
pop, will these data centers still be necessary?
Ms. TURNER LEE. Thank you for that question, Ranking Mem-
ber.
I do think that data centers are necessary. I mean, the current
compute demand of AI is out of the box, right, in terms of every-
thing that we are doing in everyday as well as what we are trying
to do with future scientific discovery.
I also think that it is still unclear whether we are going to be
able to grow these functions in the future into the current data-
center assets that we are building in the present.
I think we need to have the type of assessments that are done
to sort of have some predictability in the marketplace of how we
are going to foresee that growth. But I also think that, you know,
there are other types of data centers that can be built to accommo-
date what we are talking about with AI.
Ms. MORRISON. Thank you for that.
And what would happen to these data centers and the associated
jobs if the tech bubble does pop?
Ms. TURNER LEE. One of my fears and we have written about
this at the Brookings Institution, myself and Darrell West, my col-
league—is that we do need to have programs that leave workforce
opportunities within rural communities after the life of the data
center.
So it is particularly important that we have programs that sus-
tain themselves, where those carpenters and electricians and weld-
ers are receiving training as well as recertification, using AI, and
they are able to bring that asset back into their communities
post—the life of this one infrastructure asset.
Ms. MORRISON. Thank you.
The Environmental Protection Agency has announced that it will
no longer consider the health benefits of reducing air pollution in
regulations—it is still shocking to say those words—cutting human
health protections in favor of the fossil-fuel industry.
I am a physician by trade, and I am deeply concerned about the
health impacts of air pollution. Given these rollbacks, how could air
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pollution from fossil fuels and backup diesel generators, spurred by
data centers, affect public health in rural areas?
Ms. TURNER LEE. I definitely think the use of the word ‘‘public
health’’ is meaningful in this conversation, I think, given the com-
munity response to environmental concerns.
With that being the case, as you have mentioned, the rollback on
the $11 billion of Biden-Harris investment towards clean and re-
newable energies is a setback, and we want to make sure that we
are not setting back the progress. Because I think most tech com-
panies, including my colleagues here, want as much electricity as
possible and want it to happen to every electron.
With that being the case, when workers are sick in rural commu-
nities because of these environmental impacts, small businesses
suffer. When young people are sick due to asthma and other re-
lated environmental illnesses, they don’t go to school. And so, we
want to make sure that we are not having a bigger impact, I think,
on the community, given the fact that we know very little about
the environmental impacts.
Ms. MORRISON. Thank you for that.
How much electricity and water does the smallest hyperscale
data center consume?
Ms. TURNER LEE. Well, I will say this because I am not a sci-
entist by trade; I am a sociologist. But we do know hyperscalers ex-
ceed and my colleagues can correct me if I am wrong about 100
megawatts, in terms of electricity.
We also have to consider the offsite electricity used. Some tech
companies are being responsible—we have seen that with Microsoft
in terms of trying to figure out ways to build substations or take
advantage of other electricity outlets. But, again, it is not just the
building where the electricity is being consumed; it could be other
buildings across the community that have to power and generate
the same amount of power generate and consume the same amount
of energy.
Ms. MORRISON. And what about water? How much water is
used?
Ms. TURNER LEE. Yeah, the water issue is tricky as well.
Based on the data center’s size, we still see continuous water flow.
Again, given the fact that there have been advancements in science
when it comes to closed loop systems or using recycled water, I am
excited about these opportunities.
Again, water consumption is critical. Data centers must be
cooled. And if they are not cooled, it takes the whole investment
and throws it out in the wayside.
Ms. MORRISON. I am glad you referenced that. So, depending
on what cooling systems a data centers uses—because they use dif-
ferent ones—it may consume even more water or more electricity.
Can you just briefly walk us through the tradeoffs of each type
of cooling system?
Ms. TURNER LEE. Well, we already know that we have an out-
dated and archaic national water and irrigation system, so that is
a cause of concern.
I also think what is interesting, too, is that we probably need to
use, Ranking Member, more AI to help us to monitor the type of
water that is going into these units, as well as ways in which we
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can save residential households money, you know, by the consump-
tion.
Communities adjacent to data centers are not getting the best of
AI when it comes to these water and energy consumption meas-
ures.
Ms. MORRISON. Thank you very much.
And I yield back, Mr. Chair.
Chairman ELLZEY. Thank you, Doctor.
I now recognize Mr. Finstad from Minnesota for 5 minutes.
Mr. FINSTAD. Thank you, Chairman Ellzey. Thanks for holding
this important hearing today.
And thank you to our witnesses for being here.
As the Representative from the First District of Minnesota, a dis-
trict that is founded on farming, healthcare, manufacturing, and
small businesses which have helped sustain our rural areas, inno-
vation is more than just a slogan to us; it is a way of life.
With the rising demand for artificial intelligence, data centers
are moving to rural areas, like the ones I represent in southern
Minnesota, because of the availability of land, our climate—we are
nice and cold, especially right now in Minnesota—and our access
to power.
For my district, data centers can be economic anchors in their re-
gions, improving local supply chains and providing job opportuni-
ties for skilled tradespeople.
At the same time, I want to acknowledge the concerns that I am
hearing from my constituents regarding energy and water con-
sumption, affordability, grid reliability, particularly from farmers
and small-business owners and families. People want assurances
that new, energy-intensive developments won’t increase their util-
ity bills or put a strain on local power and water systems.
This hearing today is about ensuring that rural districts like
mine are ready to take advantage of innovation while solving real
problems like labor shortages and energy security. I look forward
to the discussion today and learning more about ways we can em-
power rural America to lead on this next wave of innovation.
So, with that, just a couple questions.
Mr. Crosby, many of my constituents in southern Minnesota are
concerned, have questions, maybe just don’t know for sure, in re-
gards to—I guess the question I hear is really, you know, the big,
energy-intensive facilities like data centers, they are new to us.
They may increase electricity prices or put stress on our local grids.
We just heard a little bit about the water discussion.
You have made the case that data centers can serve as an anchor
tenant that reduces costs by spreading out fixed infrastructure
costs and making up-front grid upgrade payments through con-
tributions in aid of construction.
So what is your company doing to ensure that data centers and
development in rural areas does not increase energy costs for com-
munity members and small businesses?
Mr. CROSBY. Thank you for your question.
We do not go to these environments and look for the environ-
ments to pay us on these. So we build infrastructure. We have
bought land and transferred it to the utility company for ease-
ments. We have bought—we pay for transmission. We have paid
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for switching stations, substations, and the like. That is our infra-
structure that we are utilizing.
Almost every single time, that involves additional infrastructure,
such as in Red Oak, that other parts of the community can use
that we pay for in order to bring it there—so additional switches
on a switching station, as a for-example.
The other aspect to this is that we are trying to work, as well,
with the regulatory bodies on trying to get data centers to become
grid resources.
So we are going through this cold snap right now. During Storm
Uri, if data centers had been allowed by law, and not threatened
with criminal penalties, to operate, 12 people would not have died
during Storm Uri in the State of Texas.
We can be stabilizing, distributed, islanded bodies. I will tell you,
not 100 percent of my colleagues would say the same thing, but all
of the Class A folks will absolutely look at that as, ‘‘We can be the
stabilizing factor for the grid.’’
When we do that, we utilize infrastructure that is not being used
right now, because it is, you know, 50-percent utilization when it
is not during those peak timeframes.
So you have a very small amount of hours per year where, if we
could be utilized by grid operators, we could actually reduce down-
costs for consumers and stabilize the grid, with it being our nickel.
Mr. FINSTAD. Thank you for that.
Mr. Offel, in your opening comments, I think you hit the nail on
the head when you talked about, we probably haven’t done a good
enough job explaining what the opportunities are, what the real ec-
onomics look like, what the risk and reward is in this new emerg-
ing industry.
I like to say, around the halls in this town, you know, you start
talking about data centers, AI, cryptocurrency, cybersecurity, and
you get a glazed look over a lot of people’s eyes. And these are pol-
icymakers that are hopefully in a position to educate themselves
and make decisions on the very issue that we are talking about.
So, if we have a problem here in the halls of Congress under-
standing some of the details of what we are trying to do in this
next generation of opportunities, it is easy to assume that our
neighbors are having that same issue of understanding.
So maybe do you have some thoughts about how we as policy-
makers but how the industry is taking strides to make sure that
we can talk to our neighbors about what does this mean in our
backyard in regards to energy and water and the value that it adds
to communities?
Mr. OFFEL. Yeah. Thank you, sir. And I appreciate the question.
I think this is a great opportunity for us to reshape the mindset
and the way that we view this. So, I would ask you, as this Com-
mittee, to flip the binoculars around and open up the aperture and
let us revisit this.
I think this is something that people tend to be very scared of,
because some of these things that they have been introduced to,
like some of the technologies you talked about, are very faddish,
where what we are talking about today is a data center which will
have—it is a transformational infrastructure that will have a
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greater impact on humanity since we have seen in powered flight.
This is something that is coming, and it is coming to stay.
So, I think that if we can pause, I think that we can help people
become more educated, and as we do that, they are going to become
less fearful of what these data centers are.
And we shouldn’t see them as a building. Data centers aren’t a
building. Look at them as a career field and an opportunity to build
back the middle class with high-paying jobs that don’t require col-
lege degrees.
Thank you for your question.
Mr. FINSTAD. Yeah. Thank you.
And, Mr. Chair, I yield back.
Chairman ELLZEY. Thank you.
I now recognize Ms. Goodlander from New Hampshire for 5 min-
utes.
Ms. GOODLANDER. Thank you, Mr. Chairman, thank you,
Ranking Member Morrison, for convening this important hearing.
To our witnesses, thank you so much for being here today.
We are on a really good streak with this Committee, because yes-
terday we passed two commonsense, bipartisan bills that go to the
core issues around small businesses and artificial intelligence.
And I couldn’t agree more with my colleague from Minnesota; the
Congress should be spending way—as much time as possible on
this important issue. This is a transformational issue. We have
never seen a revolution quite like this AI revolution.
You know, when we talk about data centers and other innova-
tion-driven investments in rural areas—and I represent the most
beautiful district in the nation, a very rural district, where I hear
every day about the pain people are feeling from high costs across
the board—my priority is to make sure that these projects, that
these innovations, aren’t going to shift new burdens and new un-
bearable costs onto hardworking people who are already feeling a
whole lot of pain right now.
When we talk about energy costs and data centers, you know, I
start from the premise that New Hampshire has some of the high-
est energy costs in our country. You know, this week, we are on
track to have some of the coldest days of winter to date, and the
people I represent cannot bear higher electricity bills, higher en-
ergy costs.
I appreciate the testimony of our witnesses so far.
Dr. Turner Lee, I wanted to ask you how you would advise Con-
gress to think about the real ways in which data centers—what ac-
tions we can take to make sure that no costs are shifted in an inap-
propriate way onto people who just cannot bear the pain of higher
costs right now.
Ms. TURNER LEE. Thank you very much for that, Representa-
tive. And I agree, affordability is a huge concern for many con-
sumers that are resisting data centers to date.
It is important for Congress to continue to have the dialogues
that we are having around updating and modernizing the energy
grid. Clearly, this is a conversation of 20, 25 years ago, and we are
putting on top of an outdated energy grid more resources that I
think will continue to strain those communities.
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It is important for public utility commissions to be at the table
in these conversations because they set the rates for ratepayers.
And it is also important for tech companies, who are coming in
and draining some of those assets, to talk with PUCs, local govern-
ments, and consumers, to figure out ways in which they can set
clear standards and rates for what electricity should look like.
I mentioned earlier what Microsoft has done, for example, re-
cently in their announcement about a community AI first, is to
have set in certain rates that they pay, whether or not there is a
variable increase or decrease in energy consumption. And we need
to see more of that so that they are footing the bill as opposed to
everyday Americans.
Ms. GOODLANDER. Well, I want to ask also about water secu-
rity and water costs. Because when we look at utility bills in New
Hampshire, what we have seen in so many of the towns I rep-
resent, particularly in the southern part of my State, big, foreign
corporations have come into New Hampshire, polluted our water,
eliminated our wells. The costs of clean water have never been
higher in our State.
In your testimony, Dr. Turner Lee, you speak about water im-
pacts as one that are—as impacts that aren’t often fully understood
until after a project has become underway. I hope you might be
able to speak a little bit more about that, to your really important
point that we need to be clear about the costs up front.
What can and should Congress be doing to make sure that we
have clarity and that we are putting all of our tools to use to make
sure that these important developments don’t actually undermine
a core function of government, which is to make sure we have clean
water for our citizens?
Ms. TURNER LEE. I appreciate that question.
And as I have said in my oral statement as well as written, it
is important that Congress support States and allow them to be
part of the negotiating table. You know, when we put barriers for
State leaders to actively think about how these data centers are po-
sitioned in their community, we burden them, as well, and we re-
move them from the table.
I think Congress should really move away from moratoriums and
restrictions on the States to be actually involved.
I think community benefit agreements might be another way for
us to negotiate these speculative opportunities that are being pro-
moted to communities. Lancaster, Pennsylvania, for example, just
did a $20 million community benefits agreement that also includes
quality-of-life factors—air quality, water consumption, other edu-
cational assets, jobs.
We need to see Congress promote and support States actually en-
gaging in those community benefit agreements, because I think it
will get to the broader question that you are asking, Representa-
tive, which is, how do you just put everything in the bucket and
make sure communities come out safe when this is all said and
done?
Ms. GOODLANDER. Well, thank you so much.
I yield back, Mr. Chairman.
Chairman ELLZEY. Thank you.
I now recognize Chairman Williams for 5 minutes.
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Mr. WILLIAMS. Thank you, Chairman.
Thanks again to the group for being here today.
Mr. Crosby, the data-center boom has led to some growing pains,
especially in meeting the workforce demand. However, the industry
is already taking steps to address this challenge.
Now, what steps have Compass Datacenters taken to build part-
nerships, including public-private partnerships, in career and tech-
nical education programs to address workforce needs?
Mr. CROSBY. Thank you for your question.
The Texas State Technical College and ourselves—we were look-
ing for a partner to start a school. We scholarship the school. And
then we brought in all of our partners, all of our suppliers, our cus-
tomers, and our competitors that now all sponsor this program. It
is called MEI. It is based in Red Oak.
We are now also donating a facility, a little later this year, on
the campus to allow the students to have a place to practice it, in
which our—not only our client but also our equipment suppliers
are donating equipment for them to be able to work on it.
We plan to replicate this model in multiple markets where we
have these levels of investment. These are, you know—when ‘‘all-
in’’-type investments are north of $20 billion, you need a long-term
workforce.
This is something that we work very closely with—we have had
great work with Ellis County, and Red Oak officials have been
super-supportive of it as well. I think the private-public partner-
ship is a very easy way to do this.
Mr. WILLIAMS. Okay.
How do you interact with local communities before beginning to
build data centers to ensure they are an equal partner and valued
stakeholder?
We have talked about communications. You can’t have any—you
can never be too short on communications. So——
Mr. CROSBY. That is right. The challenges that have been
brought up by the doctor are not—I would say they are not very
common today, but they are still—I mean, they still come up. And
when you do not engage with these communities properly—so, for
example, when we walk into a community, a lot of people have a
myth that these are going to use a lot of water. It is not true. We
don’t use water at our facilities for those purposes.
So we will end up in these meetings. We engage with the com-
munity. We sit in the meetings with the hearings, the public hear-
ings, answer their questions. Our most recent one we had in
Statesville, North Carolina, we had people that had ‘‘No’’ stickers
that took their ‘‘No’’ stickers off at the end of it as they learned
more facts.
The key is education, and the key is doing the right thing for
that community. That means you have to be built to last. You can-
not be built to exit in this business.
Mr. WILLIAMS. Yeah. Sometimes you get one crack at it, and
you have to get it right.
Mr. CROSBY. Yes, sir.
Mr. WILLIAMS. Mr. Offel, the growth of the data-center indus-
try has brought massive demand for tradeskills. We have been
talking about that all day here. However, the demand for elec-
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tricians, HVAC technicians, and plumbers has outpaced supply.
And I know, in Texas, we are short of welders; we always are short
of welders.
Now, your business, Overwatch Mission Critical, is actively
working to address this problem. What methods have you found
most effective in developing the necessary workforce to grow this
economy and your industry?
Mr. OFFEL. Thank you for the question, Mr. Chairman.
It is simple. We have tried to approach this from multiple dimen-
sions.
One was with a bunch of Band-Aids. We tried to figure out how
we can transfer people that were in adjacent verticals of industry
into this industry. And we realized that the adoption rate of emerg-
ing technology, specifically driven because of the surge of AI, has
allowed us to discover that that strategy is no longer tenable.
I am at a point right now where we need to create another ap-
prentice program. This is the fifth utility. This is the fifth utility.
We need to have an apprenticeship and journeyman program asso-
ciated just to this. We needed our own, dedicated apprenticeship
program.
And we have partnered with a group, a small business—veteran-
owned small business in Dallas, Texas, and we have partnered
with them to create an incubator that could put 1,200 people
through that program a year that will be certified in data centers.
They could join the workforce immediately and be a data-center ap-
prentice.
Mr. WILLIAMS. There are 10,000 kids a year dropping out of—
or, 100,000 kids a year dropping out of school in Texas in the ninth
grade. They are losing hope. And we have to be able to show them
that it is not about being architects, businesspeople, whatever.
Plumbers, welders, carpenters, technicians. It is important you do
this because we can save a lot of kids who are now dropping out
of school and we are losing them.
So thank you for——
Mr. OFFEL. The largest demand for labor is in this vertical. This
industry grows faster than every other industry on this planet be-
cause of the growth of every other industry on this planet.
And there is no sense sending our kids to college for data cen-
ters. Whatever they would be exposed to or learn their freshman
year would be obsolete by the time they graduated.
There are 6-week, 12-week, and 18-week programs that are de-
signed for high-school kids, as well as the 17,000 people leaving the
military on Active Duty every month. There is a large, massive
workforce of trained people coming out of military that we are look-
ing to adopt. And those people will help us lay out a roadmap to
where we could support people transitioning right out of high
school.
They just don’t know the industry yet. And, right now, everybody
is telling them that they need to be scared about it. We need to
fix it.
Mr. WILLIAMS. Well, in the time remaining, take it to them.
Because there are these 100,000 kids who need to have an oppor-
tunity, and they will hire their friend too.
Mr. OFFEL. Yes, sir.
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Mr. WILLIAMS. Mr. Chairman, I yield back.
Chairman ELLZEY. Thank you.
I now recognize Mr. Olszewski from Maryland for 5 minutes.
Mr. OLSZEWSKI. Thank you very much, Chairman Ellzey, to
Ranking Member Morrison, and to all of our witnesses today. I ap-
preciate your time and your presence.
My district in Maryland is home to many beautiful rural commu-
nities in both Baltimore and Carroll Counties, which affords our
State flourishing farmland and engaged small businesses.
Agricultural preservation is a top priority for our district. Since
1980, Carroll County alone has preserved nearly 81,000 acres, with
over $200 million invested. Prior to coming to Congress, as Balti-
more County executive, I helped push our number to over 71,000
acres of farmland preserved.
In Maryland, our farms account for billions of dollars of economic
activity. They are a critical part of our history and our economy.
Although we do not currently have a data center in Maryland,
there are plans to have one under development in Frederick Coun-
ty, and others are being considered across our State.
For more than a year now, Baltimore, Frederick, and Carroll
Counties have been contending—frankly, fighting—a proposed 67-
mile high-voltage transmission line, known as the Maryland Pied-
mont Reliability Project, or MPRP, needed to fuel power in data
centers in northern Virginia—power that we worry, frankly, is sim-
ply being transferred from Peach Bottom, Pennsylvania, to north-
ern Virginia.
Sadly, our questions to clarify this have gone completely unan-
swered, both by PJM and by the project’s developer. Worse, emi-
nent domain has been proposed. So, unfortunately, that ‘‘reli-
ability’’ doesn’t seem to cover the Maryland rural communities who
are facing the project’s burden.
Even worse, to Ms. Goodlander’s point, the cost of this project,
$424 million, would fall on Maryland ratepayers—ratepayers who
are already crushed under a cost-of-living crisis and increasingly
high utility costs in our State.
I understand that transmission lines play a role in modernizing
the electrical grid. However, my constituents and I have been very
vocal in expressing these concerns.
Our communities have worked for decades, with millions of local
and State dollars invested, to conserve this land for future genera-
tions, to preserve the economic activity on these lands. Now they
are being told it must be sacrificed and their livelihoods disrupted
for a transmission line that won’t even offer them benefits, and yet
these constituents are being asked to pay for it.
I guess I would just open with a question for all: Is that fair?
Does that make sense?
Ms. TURNER LEE. Well, I will start, Representative. And I want
to also say to you, Maryland does have beautiful farmland. I spend
a lot of time in Garrett County, Maryland, as part of my book with
farmers as well as small businesses, entrepreneurs, and residents.
The transmission line project I do write about in my written
statement, and I think it is one of those examples where we do see
a lack of coordination between all the actors and—I do agree with
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my colleagues—a lack of transparency when it comes to informa-
tion about what is being done and what is being built.
The revenue should come on the side of the companies, not the
taxpayers.
Mr. OLSZEWSKI. Yep.
Ms. TURNER LEE. Because the revenue that comes from the
companies can take those communities, even though they don’t
have a data center—but they can possibly build, you know, a better
school, a better firehouse, better broadband for that matter.
I do say to you, I do not think it is fair that the community is
left in the dark and is going through several challenges to under-
stand why, when, how this project is going to pan out for them.
I appreciate that and you including it in your written testimony.
Gentlemen?
Mr. CROSBY. Yes. Thank you.
Look, I agree with a lot of your points. I don’t think it is fair for
us to come to communities and just say, it is on—you know, it is
on you as a community. Those days were decades ago.
Mr. OLSZEWSKI. Yeah.
Mr. CROSBY. There are a lot of new players that are doing that
sort of technique. And check their capitalization and check their
track record—that is what I would say—if you are a community
looking at these groups.
The other thing I would state is, this should be a very bipartisan
issue. Transmission upgrade is absolutely necessary. When we
transmit electricity at 69 kV, 130 kV, 90 percent of it is lost in the
air versus high voltage.
Mr. OLSZEWSKI. Yeah.
Mr. CROSBY. Ninety percent. That means we don’t have to
produce more generation. That means we have generation that just
gets wasted.
And this is one of the biggest things that we should—that all
parties should rally around. We need to upgrade this. That is the
easiest, cheapest way for us to do things.
Mr. OLSZEWSKI. Yeah.
Mr. CROSBY. And data centers want to contribute to that. Come
to any of our locations and you will see that brand-new trans-
mission and——
Mr. OLSZEWSKI. And I appreciate the consensus.
Just with my 30 seconds left—and, Mr. Offel, hopefully I will
give you a chance to respond as well—but I just want to put on the
record, Mr. Chairman, a 2024 ‘‘Lazard’s Levelized Cost of Energy’’
report as well as a NextEra Energy’s 2025 investor presentation.
I ask unanimous consent to enter those into the record.
Thank you very much.
I just want to point out that renewable energy projects, according
to these, are both cheaper and faster to get built to help fuel this
need. So I appreciate our opportunity to look at that.
And I apologize we didn’t get to you on the answer there, but I
really appreciate your testimony.
Thank you. I yield back.
Chairman ELLZEY. I now recognize Mr. Schmidt from Kansas
for 5 minutes.
Mr. SCHMIDT. Thank you, Mr. Chairman.
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And, like my colleagues, I want to thank our witnesses for being
here today. It is a topic not new to you but still very new to many
of the communities that we represent, and, like a lot of new sub-
jects, as has been suggested here today, it tends to present itself
in different ways in different communities.
And I have listened carefully, during the time I have been here,
to some of the suggestions and responses you have had regarding
questions about community engagement, which I appreciate very
much. But let me ask just a much more, sort of, global question on
that.
So I came out of State government. I am a State- and local-con-
trol person philosophically, and I believe it in my bones, and I am
certainly not advocating something different here.
Having said that, one of you, at least, compared in your written
testimony the development of the data-center industry to the devel-
opment of the railroads. And, obviously, 150 years ago, that was a
nationalized policy conversation that resulted in national control,
some of which, you know, we still deal with the downstream effects
of that today, but it also created a tremendous industry.
And I guess I would just ask you to speak, either with particu-
larity or philosophically, about, as you look forward, how this in-
dustry is going to grow. What is the right balance between federal-
izing some of these decisions, standards, requirements, and leaving
it to those case-by-case local advocacy decisions?
And we can just go down the row.
Mr. Crosby?
Mr. CROSBY. Thank you.
Look, I believe the local is always the first approach. You know,
there were comments about water and water usage. Those are ne-
gotiated locally. Those are not negotiated on a big basis. So those
communities are making those decisions live, and we see that.
The State of Texas has an advantage, in some ways, because
FERC is not engaged with some of the things, and the ability to
adapt technology is a little bit faster to try new things.
I think speed is one of the elements, where there is an aspect
where you are continually making adjustments, continuous-im-
provement type of items, as you get feedback from these sorts of
infrastructure investments.
We are putting in massive amounts of capital into the ground
and into the wires that are going ahead, building plants. Renew-
ables was mentioned. Data centers have been—data centers and
data-center users have been responsible for over 70 percent of the
PPAs that are around renewables.
We are driving change. We want to do the right thing. The top
companies definitely do. And let us work with those communities
to continue to innovate and come up with these new and creative
ways to do things.
Mr. SCHMIDT. Mr. Offel.
Mr. OFFEL. Yes, sir. Thank you for the question.
Just to put a pattern together for a bit of history, when we start-
ed with the first major infrastructure upgrade in America, the rail-
ways, the number-one concern was energy, and the number-two
was environmental impact.
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And when we did the electrification of the grid, the number-one
concern was energy, and the number-two was the environmental
impact.
The third was the Interstate Highway System, and the fourth
was the automobile. And, in every case, the primary theme has al-
ways been energy and what is the impact on environment. And
now we are evolving too, what are the jobs that are being created
as a byproduct of these vertical industries that are emerging?
The things that take an industry like ours, which is niche—and,
today, this represents the fact that we are now in the main-
stream—is industries that—like the automobile industry, when we
were rolling those cars out on the road, they lacked safety, regula-
tion, oversight, governance, regulation, and, many would argue,
ethics—some of the same things that you are challenging us on,
and justifiably so, today.
The answer is, we have a partnership with you. We must be
working with all elements of levels of government. And we need to
be able to make sure that someday you understand that we are no
longer consumers of your utility, we are creators of it, making us
partners of it.
We will be able to reinforce—and I think in your district, what
he was talking about was to have the ability to island ourselves.
If we have, since the birth of this vertical, 55 gigs of energy on the
grid, we are under construction today for 40 to 80 gigawatts of nat-
ural renewable energy, meaning that we will not only put our own
energy on the grid and tie it into the grid in a closed transition,
allowing us to co-generate, that gives us not only the ability to
move the needle to the left, but we reinforce that grid so that the
people that are out in the urban areas aren’t at risk of losing
power, because data-centers providers are the ones that are build-
ing it.
And, today, with the exception of a few misfit toys, we are at
zero-water design on data centers. We don’t use water, for the
same reason you don’t use water in your radiator, which is a
closed-loop system. It doesn’t absorb and reject heat fast enough.
These data centers are so dense that we can’t use water.
So, we are here to partner with you on creating more water, and
we are partners to the utility. We will become a utility ourselves.
Mr. SCHMIDT. Doctor, I have 10 seconds.
Ms. TURNER LEE. Yeah, just 10 seconds.
I actually challenge the railroad analogy, so I will start there, be-
cause I think we need to think about the railroad as it allowed
rural communities to become transit points for the way in which
we were actually moving trade, and data centers that actually may
be incentivized to bring more profit to companies versus people.
I want to actually challenge that, because I think AI needs more
industrial policy, in many respects, to ensure that we get national
benefits.
I would just say outside of just the energy policy for the Con-
gress, it is important for Congress to also create a certain environ-
ment in the marketplace. Tariffs, the availability of critical min-
erals, our availability to have the aluminum that is going into the
buildings—it is all uncertain right now. And I think those costs
could actually be passed on to communities if we actually don’t get
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the certainty of the marketplace right in terms of our congressional
policies.
Mr. SCHMIDT. Thank you.
I yield back, Mr. Chairman.
Chairman ELLZEY. Thank you.
I now recognize Ms. Scholten from Michigan for 5 minutes.
Ms. SCHOLTEN. Thank you, Mr. Chairman.
Dr. Turner, every 2 years, we pass a bipartisan Water Resources
Development Act, which authorizes the Army Corps of Engineers
to address water supply needs and carry out vital infrastructure
products.
I am happy to report that the Committee has been hard at work
to develop the seventh consecutive bipartisan WRDA to navigate
local water resource challenges, boost regional economies, create
jobs, and protect our natural environment.
What is the importance to our rural communities that WRDA is
passed in a bipartisan fashion?
Ms. TURNER LEE. It is extremely important. I have nothing
else to say. But I think we do need to keep passing this, because
that is actually going to allow us to negotiate through some of
these challenges that we have been talking about today.
Ms. SCHOLTEN. Absolutely.
The few operations jobs that data centers create require IT ex-
pertise, meaning individuals in career and technical education—ca-
reers in technical education will be increasingly in demand.
Last week, I introduced my bill, the Honoring Vocational Edu-
cation Act, which would permanently establish a survey on edu-
cation attainment within the skilled technical workforce. It is crit-
ical to advancing and maintaining a skilled workforce. We have to
ensure that skilled tradespeople and technical workers are fully ac-
counted for in federal workforce data, especially when these jobs
are becoming so critical to building and supporting innovation.
Again, Dr. Turner Lee, what is the role of career and technical
education in ensuring that these local jobs can be filled and created
as data centers are developed?
Ms. TURNER LEE. I completely agree with you. A couple years
ago, when we had the BEAD money, I did the same thing with
broadband, because these are livable wage jobs.
Ms. SCHOLTEN. Yep.
Ms. TURNER LEE. They are jobs that we need to build the in-
frastructure. Just as the Hoover Dam, we had to build that dam,
we had to find workers to do the same thing.
I think we need to continue to invest in technical training, but
I also want to make sure that there will be jobs that have some
IT slant to it, because technical jobs—even your greatest plumber
has to rely upon AI in some way or form to do their job.
And so it is important for us to balance that—how do we do the
acute, you know, faculty skills alongside making sure rural commu-
nities and rural citizens know how to actually maneuver through
AI itself.
Ms. SCHOLTEN. Absolutely. They go hand-in-hand——
Ms. TURNER LEE. They do.
Ms. SCHOLTEN.—and have to be developed together.
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One last question for you, Dr. Turner Lee: In your testimony, you
discuss the importance of ensuring early collaboration between util-
ities, local governments, and their rural communities.
Just last month, in my district, a planning meeting for a data
center in Kent County was canceled due to overcapacity, with hun-
dreds of residents showing up to make their voices heard in these
discussions.
How can we, as Members of Congress, help facilitate and support
these conversations to ensure that residents aren’t left in the dark
as planning for these data centers continues?
Ms. TURNER LEE. Well, I want to agree with my colleagues,
particularly the—my colleagues who are in a space where they are
working every day with some of these local communities. And I
commend them on the efforts that they have put forth.
I do think Congress should put out some type of data-center lit-
eracy act——
Ms. SCHOLTEN. Uh-huh.
Ms. TURNER LEE.—something that allows people to know that
this next stage of innovation, if we are comparing it to the railroad,
is an all-in project.
Ms. SCHOLTEN. Yeah.
Ms. TURNER LEE. Everybody needs to be at the table.
I think we are seeing these rooms full to capacity because people
are really worried. They are worried about the things that they
know based on what the media is telling them, and they are wor-
ried about the things that they do not know.
Ms. SCHOLTEN. Yeah.
Ms. TURNER LEE. It is an easy fix if we find ways to raise their
literacy around what data centers are and what they do.
And I actually would say that we connect this to AI literacy
bills——
Ms. SCHOLTEN. Yeah.
Ms. TURNER LEE.—so people know that when there is a data
center in your neighborhood, there is a benefit to you as well——
Ms. SCHOLTEN. Yeah.
Ms. TURNER LEE.—and, you know, what you can access and
do.
Ms. SCHOLTEN. Absolutely. I am already working on something
like that with one of my colleagues from Michigan. We would love
to run it by you, get your input on it as well.
So thank you so much for your testimony.
I yield back.
Ms. TURNER LEE. Thank you. I look forward to working with
you.
Ms. SCHOLTEN. Thank you.
Chairman ELLZEY. Thank you.
I now recognize Mr. Wied from Wisconsin for 5 minutes.
Mr. WIED. Thank you, Mr. Chairman.
Thank you to all of the witnesses for being here today. We appre-
ciate the work each of you are doing to shape the future of Amer-
ica’s digital infrastructure and the communities that support it.
Across the country, we are seeing a rapid growth in data centers,
driven by the accelerating demand for AI. Increasingly, these facili-
ties are choosing rural communities, creating new opportunities in
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skilled trades, construction, and facility operations, offering a path-
way to stable, middle-class careers in regions that have too often
been left behind.
At the same time, this expansion brings real challenges, from
meeting the energy needs of these facilities to the increase in work-
force demands.
Small businesses are central to this story. They are the contrac-
tors, suppliers, and service providers who make these projects pos-
sible and who stand to benefit long after construction ends.
As AI demand centers continue to grow, it is my hope that we
can find solutions that balance the needs of tech entrepreneurs
while also protecting the rights and the voices of, of course, our
local communities.
Mr. Crosby, I will start with you. In your testimony, you said
that data centers act as anchor tenants that put downward pres-
sure, actually, on electricity rates. And that is one of the biggest
concerns. We have a project in northeastern Wisconsin that was—
you know, the local, the community was very, very involved. That
was one of the big concerns, is electricity rates.
Could you expand, walk us through, you know, how rural tax-
payers actually could see savings?
Mr. CROSBY. Yes. In States where it is not regulated that they
have to share everything with consumers—so there are States and
regions in the country that it is forced to be shared, so even if you
wanted to foot your own bill, you are not allowed to foot your own
bill; it is forced onto consumers.
In those other States that that is not the case, you can—one is
the connection interconnect charges. That is paying to bring the
power to you. That is what we pay for, those charges to do that.
The second is, how do the rates come down? So keep that first
cost off, of bringing the transmission to you. Now, how do the rates
come down? Because if we can utilize existing infrastructure—the
grid runs at about 50 percent right now. And if we can use that
infrastructure for the vast majority of the year—in a State like
Wisconsin, you might have 20 hours a year of peak power, out of
8,760 hours. That means we could be utilizing that capacity and
then island ourselves during those times where the grid operator
says, ‘‘It is a tough environment. Go ahead and come off the grid.
We don’t want consumers to—we don’t want there to be anything
to hurt the grid.’’ That is a grid stability.
If you are using infrastructure that is already built and paid for,
it will drive down costs for consumers. We have seen that. South-
ern Company, Chris Womack’s company, they put out a report
there about that. PGE put out a report, Maria Pope.
We work very closely with utilities—EPRI, EEI. We are trying to
get the regulatory environments to allow us to pay for what we
want—pay for the power that we want to use and help us drive
down these costs.
Mr. WIED. You also mentioned—another thing that I have heard
a lot with this most recent one in our community is depletion of
the aquifer.
You mentioned that Compass mandates water-free cooling tech-
nology to protect agriculture water supplies. Can you explain what
that looks like in practice?
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Mr. CROSBY. Yeah. I grew up in the State of Texas. Water has
always been a precious resource. We were one of the very early
adopters of saying no water. A lot of evaporative cooling was used
in the space.
That got eliminated several years ago but for a few, as Kirk likes
to say, misfit toys and then some that are using evaporative cooling
but creating water-positive environments, where they are investing
in and replenishing aquifers more than what they use.
I do not think it is a valid claim anymore to say with a blanket
statement that data centers use water. I reject the premise of that.
Mr. WIED. Let’s go to Mr. Offel.
I think you—well, you acknowledged that the industry hasn’t
communicated very well with local communities. And I feel, you
know, we don’t want them blindsided.
And so, from your point of view, what is—no question, we need
early engagement, and engagement is very important in these
types of things. What does early engagement look like to you? How
do we ensure that rural residents, they feel informed rather than
blindsided?
Mr. OFFEL. That is a fair question. And their concerns are ex-
tremely valid. We are not trivializing those. The only way to solve
it is with immersion.
There are three different types of audiences that we need to ad-
dress. There is no silver-bullet answer that will make everybody
happy.
We need to convert the way that we view these things as some-
thing that is just a consumer of utilities, and we need to help them
understand what AI means to them as a human beings, how does
it help them.
As a small business, AI gives me the ability to compete against
the Goliaths of this world, because it level-sets the playing field.
Plus, for those people that want to be in the game, it opens up bet-
ter career opportunities, because it lowers the barrier of entry to
market for new jobs.
Mr. WIED. Thank you, Mr. Chairman. I yield back.
Chairman ELLZEY. Thank you.
I will now recognize Dr. Morrison for her closing statement.
Ms. MORRISON. Thank you, Mr. Chairman. And congratula-
tions on a very amiable hearing. I think this has been a really in-
teresting and important conversation.
And I am grateful to the witnesses for your presence.
You know, we have talked about the good, the bad, and the ugly,
in some cases, parts of the data-center boom. It is a very nuanced
topic. And there are so many ways that data centers play with ex-
isting issues, such as tariffs, which are crushing our main streets
and industries—we have recent evidence that supports what econo-
mists have been saying from the beginning of this chaotic tariff
war, that Americans pay them in taxes; 96 percent of tariffs have
been paid for by Americans over this past year—and the immigra-
tion crackdown choking our workforce and entrepreneurs and, as
someone from the Twin Cities, literally terrorizing our commu-
nities.
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I intend to submit further questions for the record. I hope to
keep the conversation going down the line. There is so much to dis-
cuss.
Thanks so much, again, to the witnesses for your insights.
And, with that, I yield back.
Chairman ELLZEY. Thank you, Dr. Morrison.
I recognize myself for a closing statement.
I am so proud to have data centers in my rural community just
south of Dallas.
There was a lot of concern at the very beginning about what does
this mean, this new technology, this new horizon of ours in tech-
nology and AI and everything that goes with it. I understand the
fear of some of my colleagues on particularly the Eastern Seaboard,
which is stretched thin with energy, power, and water and lines
and so many other things.
I am here to tell you that if you are interested in seeing what
they really do, how they really contribute to our communities, Doc-
tor, come visit us in Red Oak and Midlothian for a couple days,
stick around. These gentlemen would be happy to host you, and so
would I.
As I look at the city of Red Oak, which is growing by leaps and
bounds because of industry coming there, a talented workforce—all
of the people in that community are benefiting from these data cen-
ters coming to them, from construction, from flipping burgers, from
Walmart, from Brookshire’s, to homebuilders, to everybody else in
between, and a strong, stable tax base to provide excellent schools,
excellent public schools for our kids.
They are not drawing on the water. They are adding to the
power. They are adding security in a lot of rural communities that,
in many cases in Texas and elsewhere, those rural communities are
looking for a reason to survive, and many of them are struggling.
This new technology gives them an opportunity to do so. They are
doing so responsibly, with the cooperation of State and local gov-
ernments. And they are an incredible benefit to the State of Texas
and to Red Oak, Midlothian, and Ellis County.
So I want to thank everybody for participating in this robust dis-
cussion today. It has been a fantastic hearing. I hope it generates
more discussion going forward. Thank you all for being here.
And, without objection, Members have 5 legislative days to sub-
mit additional materials and written questions for the witnesses to
the Chair, which will be forwarded to the witnesses.
I ask the witnesses to please respond promptly.
If there is no further business, without objection, the Committee
is adjourned.
[Whereupon, at 11:22 a.m., the Subcommittee was adjourned.]
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APPENDIX
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Æ
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File and source
- File
- CHRG-119hhrg62603.pdf
- Size
- 171,962,014 bytes
- SHA-256
- 3e57423dbcdd11400392def4415641fc507500f692ce06250c02624010cc82f7
- Our copy
- CHRG-119hhrg62603.pdf
- Original
- www.govinfo.gov