Data center owners urge US Treasury to keep renewable energy subsidy rules

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August 15, 2025 2:27 PM EDT

FILE PHOTO: United States Department of the Treasury logo and U.S. flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -The Data Center Coalition, which represents data center owners including Google, Amazon and Microsoft, called on U.S. Treasury Secretary Scott Bessent to uphold existing rules for wind and solar energy subsidies, saying they have enabled the industry to grow quickly and stay ahead of competition from China.

WHY IT'S IMPORTANT

Tougher rules on how projects can qualify for federal clean energy tax credits could slow development of new electricity generation at a time of surging power demand driven by artificial intelligence and the digital economy.

KEY QUOTE

"Any regulatory friction that slows down deployment of new generation today directly impacts our ability to meet AI-era electricity demands tomorrow," the coalition wrote in its letter to Bessent. The letter is dated August 4 but was seen by Reuters on Friday.

CONTEXT

President Donald Trump issued an executive order in July directing Treasury to tighten clean energy tax credit rules, including redefining what it means for a project to have started construction.

The industry has relied on the existing rules for the last decade, and advisory firm Clean Energy Associates projected this week that the United States could lose about 60 gigawatts of planned solar capacity through 2030 if stricter "beginning of construction" rules are implemented.

BY THE NUMBERS

Between 2017 and 2023, the U.S. data center industry contributed $3.5 trillion to the nation's gross domestic product and directly employed over 600,000 workers, according to the DCC.

WHAT'S NEXT

The Treasury Department is expected to issue updated guidelines as soon as August 18.

(Reporting by Nichola Groom; Editing by Andrea Ricci)


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