Big tech warns electricity, NEPA bottlenecks threaten AI build-out

By Christa Marshall | 05/09/2025 06:28 AM EDT

OpenAI CEO Sam Altman and a top Microsoft executive said solving infrastructure permitting challenges would accelerate America’s AI boom.

OpenAI CEO Sam Altman testifies during hearing.

OpenAI CEO Sam Altman testifies during a Senate Commerce, Science and Transportation Committee hearing on Capitol Hill on Thursday. Francis Chung/POLITICO

Top officials from Microsoft, OpenAI and other technology companies told members of the Senate on Thursday that permitting bottlenecks and labor shortages are a major barrier for the U.S. build-out of artificial intelligence and data centers, which is set to transform the electricity system.

The pace of the AI growth is significant for the ultimate makeup of the electricity mix, advancement of technologies like small modular reactors, and emissions. At a hearing of the Senate Commerce, Science and Transportation Committee, Brad Smith, vice chair and president of Microsoft, urged lawmakers to streamline federal permitting and potentially designate a lead agency to expedite the processing of applications for AI infrastructure.

“Further, the permitting agencies should utilize AI and digital tools to improve timelines and transparency for applicants and ensure the permitting agencies have quick access to information to assist them in their review and decision-making process,” he said.

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Smith pointed to Army Corps of Engineers wetlands permits as being a particular challenge, noting it can take 18 to 24 months to process one. State and local permits take nine months or less, he said.

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