Senate Democrats blast White House over ‘sweetheart’ AI data center deals

Senate Democrats are ratcheting up pressure on the White House over artificial intelligence data centers and the surging utility costs that have accompanied their nationwide buildout. In a letter sent Monday to Office of Science and Technology Policy Director Michael Kratsios and Commerce Secretary Howard Lutnick, five senators blasted the Trump administration for the “sweetheart deals” it has made with Big Tech companies on data centers, and its “reckless abandonment” of consumers as their electricity bills soar. The letter, which was led by Sen. Richard Blumenthal, D-Conn., states: “​​Since his second inauguration, President Trump has cozied up to Meta, Google, Oracle, OpenAI, and other Big Tech companies, fast-tracking and pushing for the buildout of power-hungry data centers across the country.” According to the letter — which was also signed by Democratic Sens. Chris Van Hollen of Maryland, Ron Wyden of Oregon, Ed Markey of Massachusetts and independent Bernie Sanders of Vermont — national power consumption from data centers could jump from 5% to 12% within three years, and even the White House noted in its AI Action Plan that “technological advancements of AI are increasing pressures on the grid.” At the same time, the second Trump administration has seemingly traded in the all-of-the-above approach to energy sources pursued during the president’s first term for a decidedly anti-renewables bent that the senators said has “supercharged this cost-of-living crisis by making it harder to increase and diversify sources of household electricity sources.” The Department of Veterans Affairs’ push to modernize decades-old systems faced a technical issue earlier this year, delaying education benefits payments for tens of thousands of students at the start of the school year. A group of veterans’ service organizations, including the Tragedy Assistance Program for Survivors (TAPS), highlighted the issue this week, telling reporters that the technical glitch occurred in August, when the VA began converting benefits claims from its legacy system to a new processing system for Chapter 35 Survivors’ and Dependents’ Educational Assistance. The VA launched its initiative to modernize the GI Bill process in 2022, and the Digital GI Bill platform was set to be fully operational by April 2024 but faced its own delays last year. A part of the multi-billion-dollar initiative involves overhauling multiple legacy systems, including those related to the education benefits process. Ashlynne Haycock-Lohmann, the director of government and legislative affairs at TAPS, told FedScoop in an interview that the veterans’ service community welcomes the changes to decades-old systems, but the timing around the school year could present risks. The Daily Scoop Podcast is available every Monday-Friday afternoon. If you want to hear more of the latest from Washington, subscribe to The Daily Scoop Podcast  on Apple Podcasts, Soundcloud, Spotify and YouTube.