Data center owners urge US Treasury to maintain renewable energy subsidies.

Data center owners, including Google, Amazon, and Microsoft, urge the US Treasury to maintain existing rules for wind and solar energy subsidies, saying they have enabled the industry to grow quickly and stay ahead of competition from China. Tougher rules could slow development of new electricity generation at a time of surging power demand driven by artificial intelligence and the digital economy. The industry has relied on the existing rules for a decade and could lose 60 gigawatts of planned solar capacity through 2030 if stricter rules are implemented.

Data center owners, including Google, Amazon, and Microsoft, have called on the U.S. Treasury to uphold existing rules for wind and solar energy subsidies. The Data Center Coalition, representing these companies, argues that these subsidies have been instrumental in the industry's rapid growth and its ability to stay ahead of competition from China.

The coalition's letter, dated August 4 and seen by Reuters on August 15, highlights the importance of maintaining the current subsidy rules. Tougher rules could slow the development of new electricity generation, which is crucial given the surging power demand driven by artificial intelligence and the digital economy. The coalition warns that any regulatory friction that hinders the deployment of new generation capacity could directly impact the industry's ability to meet future electricity demands.

The industry has relied on the existing rules for the past decade. According to the coalition, stricter "beginning of construction" rules could result in the loss of about 60 gigawatts of planned solar capacity by 2030. This would be enough electricity to power approximately 10 million homes. The advisory firm Clean Energy Associates projected this loss, noting that the industry has been guided by the current tax credit rules for investment and construction decisions [1].

The U.S. Treasury is expected to issue updated guidelines as soon as August 18. The Trump administration has been taking steps to curb the growth of renewable energy, including making it harder for companies to claim federal tax subsidies for wind and solar energy. The administration's executive order last month directed the Treasury to tighten the rules, including redefining what it means for a project to have started construction [2].

The data center industry has a significant impact on the U.S. economy. Between 2017 and 2023, the industry contributed $3.5 trillion to the nation's gross domestic product and directly employed over 600,000 workers [3].

Equinix, a major data center operator, has also been proactive in addressing energy demands. The company has signed agreements with advanced nuclear and fuel cell technology providers to meet the growing energy needs of AI-driven data centers. These moves underscore the industry's commitment to sustainable growth and technological innovation [4].

References:
[1] https://www.reuters.com/legal/litigation/data-center-owners-urge-us-treasury-keep-renewable-energy-subsidy-rules-2025-08-15/
[2] https://ca.finance.yahoo.com/news/data-center-owners-urge-us-173927240.html
[3] https://theoutpost.ai/news-story/equinix-embraces-nuclear-and-fuel-cell-solutions-to-power-ai-driven-data-center-boom-19087/
[4] https://www.reuters.com/sustainability/climate-energy/trump-administration-unveil-tougher-solar-wind-subsidy-rules-2025-08-14/