“Empowering Rural America Through Investment in Innovation.”

1[House Hearing, 119 Congress]2[From the U.S. Government Publishing Office]34                    EMPOWERING RURAL AMERICA THROUGH5                        INVESTMENT IN INNOVATION6=======================================================================78                                HEARING910                               BEFORE THE1112                         SUBCOMMITTEE ON RURAL13                      DEVELOPMENT, ENERGY, AND SUPPLY14                                 CHAINS1516                                 OF THE1718                      COMMITTEE ON SMALL BUSINESS19                             UNITED STATES20                        HOUSE OF REPRESENTATIVES2122                    ONE HUNDRED NINETEENTH CONGRESS2324                             SECOND SESSION2526                               __________2728                              HEARING HELD29                            JANUARY 21, 20263031                               __________3233[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]3435            Small Business Committee Document Number 119-02836             Available via the GPO Website: www.govinfo.gov3738                                __________3940                   U.S. GOVERNMENT PUBLISHING OFFICE4162-603                      WASHINGTON : 202642-----------------------------------------------------------------------------------4344                   HOUSE COMMITTEE ON SMALL BUSINESS4546                    ROGER WILLIAMS, Texas, Chairman47                        PETE STAUBER, Minnesota48                        DAN MEUSER, Pennsylvania49                         BETH VAN DUYNE, Texas50                           JAKE ELLZEY, Texas51                         MARK ALFORD, Missouri52                         NICK LALOTA, New York53                        BRAD FINSTAD, Minnesota54                          TONY WIED, Wisconsin55                      ROB BRESNAHAN, Pennsylvania56                          BRIAN JACK, Georgia57                         TROY DOWNING, Montana58             KIMBERLYN KING-HINDS, Northern Marina Islands59                         DEREK SCHMIDT, Kansas60                        JIMMY PATRONIS, Florida61               NYDIA VELAZQUEZ, New York, Ranking Member62                       MORGAN MCGARVEY, Kentucky63                       HILLARY SCHOLTEN, Michigan64                      LAMONICA MCIVER, New Jersey65                        GIL CISNEROS, California66                       KELLY MORRISON, Minnesota67                        GEORGE LATIMER, New York68                         DEREK TRAN, California69                       LATEEFAH SIMON, California70                       JOHNNY OLSZEWSKI, Maryland71                        HERB CONAWAY, New Jersey72                    MAGGIE GOODLANDER, New Hampshire7374                 Lauren Holmes, Majority Staff Director75                 Melissa Jung, Minority Staff Director7677                            C O N T E N T S7879                           OPENING STATEMENTS8081                                                                   Page82Hon. Jake Ellzey.................................................     183Hon. Kelly Morrison..............................................     28485                               WITNESSES8687Mr. Chris Crosby, Chief Executive Officer, Compass Datacenters,88  Dallas, TX.....................................................     689Mr. Kirk Offel, Founder and Chief Executive Officer, Overwatch90  Mission Critical, Austin, TX...................................     891Dr. Nicol Turner Lee, Senior Fellow, Governance Studies and92  Director, Center for Technology Innovation, Brookings93  Institution, Washington, DC....................................    109495                                APPENDIX9697Prepared Statements:98    Mr. Chris Crosby, Chief Executive Officer, Compass99      Datacenters, Dallas, TX....................................    31100    Mr. Kirk Offel, Founder and Chief Executive Officer,101      Overwatch Mission Critical, Austin, TX.....................    36102    Dr. Nicol Turner Lee, Senior Fellow, Governance Studies and103      Director, Center for Technology Innovation, Brookings104      Institution, Washington, DC................................    41105Questions and Answers for the Record:106    Questions from Hon. Morrison to Dr. Nicol Turner Lee with107      attachments................................................    61108Additional Material for the Record:109    Fiber Broadband Association (FBA) Letter.....................   124110    Lazard LCOE (Levelized Cost of Energy) Letter................   127111    NextEra Energy Letter........................................   175112    Loudoun County Letter........................................   206113    Food & Water Watch Letter....................................   210114    Mike Turner Letter #1........................................   217115    Mike Turner Letter #2........................................   258116    American Sustainable Business Network (ASBN) Letter..........   259117118       EMPOWERING RURAL AMERICA THROUGH INVESTMENT IN INNOVATION119120                              ----------121122                      WEDNESDAY, JANUARY 21, 2026123124              House of Representatives,125               Committee on Small Business,126                 Subcommittee on Rural Development,127                                 Energy, and Supply Chains,128                                                    Washington, DC.129    The Subcommittee met, pursuant to call, at 10:03 a.m., in130Room 2360, Rayburn House Office Building, Hon. Jake Ellzey131[chairman of the Subcommittee] presiding.132    Present: Representatives Ellzey, Finstad, Wied, Schmidt,133Williams, Morrison, Scholten, Olszewski, and Goodlander.134    Chairman ELLZEY. Good morning. Welcome to the Committee on135Small Business, Subcommittee on Rural Development, Energy, and136Supply Chains.137    I would like to recognize Chairman Roger Williams for the138prayer and the pledge.139    Mr. WILLIAMS. Please stand.140    I pledge allegiance to the Flag of the United States of141America and to the Republic for which it stands, one nation,142under God, indivisible, with liberty and justice for all.143    Would you please bow your head?144    Heavenly Father, God of all people, thank you for allowing145us to be here today to share wonderful ideas for the future of146this great country and the people that care about it so much.147    We also care about you, and that is why we strive every day148to walk in your light and not in your shadow--in our shadow.149    In your name we pray. Amen.150    Chairman ELLZEY. Good morning. I will now call the151Subcommittee on Rural Development, Energy, and Supply Chains to152order.153    Without objection, the Chair is authorized to declare a154recess of the Committee at any time.155    I now recognize myself for my opening statement.156    So welcome to today's hearing, ``Empowering Rural America157Through Investment in Innovation.''158    I want to say thanks to our witnesses for showing up today,159traveling here at their own expense to spend some time with us,160and your expertise.161    So, as the demand for AI accelerates, America's digital162infrastructure is rapidly expanding into rural communities.163This infrastructure consists of data centers being built far164beyond traditional tech hubs, with many investments being made165in rural areas, including in my district, in Ellis County. Our166rural communities and small businesses are at the center of167America's AI-driven growth.168    Texas is leading the charge in data-center development169because of our pro-growth, pro-energy, and low-regulatory170environment that has minimized the hindrance of red tape. We171have placed a strong focus on developing the workforce for172high-paying, new-collar jobs, and data companies have173recognized those benefits.174    The economic ripple effect from data centers can175reinvigorate rural communities like mine by creating high-176paying trade careers and supporting long-term economic activity177in rural small businesses. For every direct job created at a178data center, up to seven jobs are supported in the surrounding179community.180    Small businesses are supplying, maintaining, and supporting181these facilities. From construction to infrastructure upgrades,182data centers open doors for main street entrepreneurs and trade183workers to be a part of the next generation of technical184advances.185    Meeting the workforce needs of data centers across the186country will take a whole-of-community approach to attract and187train the skilled workers needed to succeed. Many of our188military veterans who return to civilian life already possess189the skills required for this industry.190    As a vet myself, I was proud to co-lead the bill that made191the Boots to Business training program permanent, alongside192Chairman Williams and Representatives McGarvey and Schneider.193Through this effort, our returning service members can be194trained to fully utilize their military skills in195entrepreneurship opportunities, including those offered by the196data-center industry. This bill was passed in the fiscal year1972025 NDAA and will continue to be a vital tool in meeting our198workforce needs.199    Building out this workforce is a crucial step in securing200America's energy dominance and supporting our national201security. At the same time, industry leaders, local partners,202and educational institutions are already stepping up with203investments in advanced energy solutions that not only204strengthen local infrastructure but keep us competitive with205the AI race with China.206    I look forward to hearing from today's witnesses about how207data centers can support local communities, strengthen the208small-business ecosystem, and help build a new middle class in209rural areas across the country.210    And, with that, I now recognize the Ranking Member,211Representative Morrison, for her opening remarks.212    Ms. MORRISON. Thank you, Mr. Chairman.213    And thank you to the witnesses for being here.214    Emerging technologies like AI and blockchains are215redefining how people around the world live and work. These216technologies are run on computers, but most computers don't217have the processing power or compute needed to run them quickly218enough for mainstream use. For advanced AI models to be219developed or operated at a suitable speed, they must be hosted220by a massive group of computers that collectively pool their221compute, found only in data centers.222    The growth of AI, both in use and in development, has223spurred an explosion in data-center construction, which has224caused a huge rise in demand for the electricity they need to225function as well as for water used by some data centers' liquid226cooling systems.227    New data centers can bring benefits, like tax revenue and228investment, to rural areas that sorely need them. But, as we229point out in most hearings, it is important to think about the230whole picture--the benefits, the costs, who receives those231benefits, and who bears those costs.232    The recent data-center boom presents numerous challenges.233    First, data centers are causing residential customers'234electric bills to rise by increasing electricity demand and235straining the electric grid.236    Second, data centers draw on supplies of clean, drinkable237freshwater, stressing local water systems, sometimes in areas238with already-limited water availability and infrastructure.239    Third, computer-part-makers, responding to AI developers'240vast capital, are shifting production from consumer parts to AI241products, making computers and smartphones more expensive.242    And last but not least, new data centers are directly and243indirectly increasing pollution and carbon emissions, posing244significant environmental health risks.245    With all that said, these outcomes aren't foregone246conclusions. It is possible to build more data centers in a way247that doesn't hamper innovation but also benefits the248communities that surround them. We should be thoughtful and249purposeful about the way we are building data centers.250    During the previous administration, Democratic251congressional majorities enacted landmark laws to lower costs252for consumers and small businesses. The Inflation Reduction Act253created tax incentives to make energy cheaper and cleaner. The254Bipartisan Infrastructure Law invested hundreds of billions of255dollars in our clean water and broadband internet. And the256CHIPS Act funds and incentivizes domestic computer257manufacturing, stabilizing and lowering computer prices.258    H.R. 1 slashed those IRA tax credits, and the Trump259administration is doing everything in its power to halt the260permitting of clean-energy products--the cheapest and fastest261forms of energy to build. He has also diverted billions in262broadband funding to Elon Musk's company Starlink for263unreliable satellite connections in rural areas. And he264proposed cutting rural water and wastewater grants by $154265million this year and repealing the CHIPS Act.266    All together, President Trump is enabling data centers to267make America's affordability crisis far worse.268    Still, we can salvage the situation. We can follow through269on the farsighted investments made by the previous270administration and put in place commonsense guardrails that271shield American consumers and small businesses from the272excesses of the data-center boom.273    I hope to have a clear-eyed and productive discussion about274how communities, especially rural ones, can maximize the275benefits and minimize the costs of the data-center projects276popping up across the nation. Affordability for Americans277depends on it.278    With that, Mr. Chairman, I request unanimous consent to279insert into the record the written statement of the Loudoun280County Virginia Board of Supervisors Vice Chair, Mike Turner.281    And I thank the witnesses for being here.282    And I yield back.283    Chairman ELLZEY. Without objection.284    And I will now introduce our witnesses--hmm? Is she here?285    I am going to pay for this later at the baseball field.286    Thank you. I now recognize the Chairman of the full287Committee, Chairman Williams, for an opening statement.288    Mr. WILLIAMS. That is a good recovery, Chairman. Thank you.289    Chairman ELLZEY. Thank you, sir.290    Mr. WILLIAMS. Thank you, Chairman Ellzey, for holding this291very timely hearing.292    And thank you to all the witnesses for being here today and293joining us with this discussion on the impact of the data-294center industry on rural communities and small businesses.295    The data-center industry is growing rapidly, and Texas is296right in the center of the action. We are witnessing the297economic and industrial revival, with these businesses driving298high demand for tradeskill workers, and technical and trades299jobs will be the backbone of the renewed American middle class.300    As Chairman Ellzey has explained, veterans come ready with301many high-demand skills that the data-center industry needs. By302making the SBA's Boots to Business program permanent last303Congress, Chairman Ellzey, myself, and other colleagues on both304sides of the aisle are arming our veterans with the305entrepreneurial skills and knowledge necessary to step into306critical roles and leadership, not only in the data-center307industry but across any industry.308    One of my highest priorities is to encourage more young309people to pursue a career in technical education, also known as310CTE. And in pursuit of that goal, I have introduced two311bipartisan bills in Congress--H.R. 1641, the Student Debt312Alternative and CTE Awareness Act; and H.R. 1642, the313Connecting Small Businesses with Career and Technical Education314Graduates Act of 2025. These bills promote CTE programs and315help graduates of these programs to find jobs with small316businesses.317    Now, career and technical education is critical to meeting318the growing demand for tradeskills professionals and building319the future of the American workforce. Ambitious and320entrepreneurial electricians, HVAC technicians, and plumbers321are finding an industry overflowing with opportunity in rural322America. Data centers cannot operate without small businesses323to build and maintain them.324    And, of course, every opportunity comes with certain325challenges. We look forward to discussing them with our326witnesses today, as we continue exploring the impact of data327centers across our communities.328    I want to thank again our witnesses again for joining us329today and for your investment in the rural communities of330Texas.331    With that, I yield back.332    Chairman ELLZEY. Thank you, Mr. Chairman. Please, no wind333sprints come March.334    And I would like to add before we delve into our witnesses335that, as we talk about our veterans--thanks for the kind words,336Mr. Chairman--that our veterans have the discipline to be337trained to do anything, and they have the drive to do338everything. So they are going to be an essential part of this.339    Our first witness today is Mr. Chris Crosby, the chief340executive officer of Compass Datacenters in Dallas, Texas.341    Mr. Crosby founded the company in 2011 after years of342working at the intersection of technology and real estate343development, focusing on delivering scalable, customizable, and344sustainable data-center infrastructure.345    Since founding Compass, Mr. Crosby has led the company's346growth, from completing its first 1.2-megawatt data center in3472012 to developing campus-scale facilities serving hyperscale348customers worldwide.349    Under his leadership, Compass has earned recognition as one350of the fastest-growing companies in the country and has become351a leader in sustainability and long-term infrastructure352development within the data-center industry.353    Mr. Crosby holds a Bachelor of Science in computer science354from UTA--UT Austin, for those not in the Sixth District.355    Thank you for joining us.356    Our next witness is Mr. Kirk Offel. Mr. Offel is founder357and chief executive officer of Overwatch Mission Critical, a358strategic data-center consulting firm based in Austin, Texas.359    Mr. Offel has had two decades of industry experience,360having worked in executive roles with Fortune 1,000 companies361and major data-center providers worldwide. His career includes362work with Medtronic, Eaton Corporation, Hewlett-Packard's363Technology Services Consulting practice, and others.364    In addition to his executive pursuits, Mr. Offel is the365founder of the Data Center Austin Conference and the host of366the ``Data Center Revolution Podcast.''367    He is a U.S. Navy veteran, having served aboard a nuclear368fast-attack submarine, and was recognized as a Member of the369class of 2010 ``Military Top 40 Under 40.''370    And, if I might add, if you are on a fast-attack submarine,371you have gone to Nuclear Power School and you are smarter than372everybody else in the room.373    And, clearly, because of that hair, you are a submariner,374not a pilot.375    I am looking forward to hearing your testimony.376    I now recognize Ranking Member Morrison to briefly377introduce our last witness.378    Ms. MORRISON. Thank you, Mr. Chairman.379    Dr. Nicol Turner Lee is a senior fellow in governance380studies at the Brookings Institution and the director of its381Center for Technology Innovation.382    She is an accomplished tech-policy expert, focusing on383equitable access to and impacts of technology, with three384decades of experience in research and advocacy. Her recent work385includes a 2024 book titled ``Digitally Invisible: How the386Internet is Creating the New Underclass'' and a chapter in387``The Oxford Handbook of AI Governance.''388    Before her time at Brookings, Dr. Turner Lee was the chief389research and policy officer at the Multicultural Media,390Telecom, and Internet Council and the director of the Media and391Technology Institute at the Joint Center for Political and392Economic Studies.393    She has also served on federal advisory commissions, such394as the Commodity Futures Trading Commission's Technology395Advisory Committee, the Department of Homeland Security's AI396Safety Board, and the Federal Communications Commission's397Communications Equity and Diversity Council.398    Dr. Turner Lee holds a B.A. from Colgate University and an399M.A. and Ph.D. from Northwestern University.400    She might compete on the smart front here.401    Welcome, Dr. Turner Lee.402    Chairman ELLZEY. Thank you all for being here.403    Before recognizing the witnesses, I want to remind you that404you have 5 minutes. If you go over 5 minutes, I start tapping,405and then I start screaming after that.406    I now recognize Mr. Crosby for his 5-minute opening407remarks.408409 STATEMENTS OF CHRIS CROSBY, CHIEF EXECUTIVE OFFICER, COMPASS410 DATACENTERS; KIRK OFFEL, FOUNDER AND CHIEF EXECUTIVE OFFICER,411OVERWATCH MISSION CRITICAL; AND NICOL TURNER LEE, PH.D., SENIOR412  FELLOW IN GOVERNANCE STUDIES AND DIRECTOR OF THE CENTER FOR413          TECHNOLOGY INNOVATION, BROOKINGS INSTITUTION414415                   STATEMENT OF CHRIS CROSBY416417    Mr. CROSBY. Thank you, Chairman Ellzey. Thank you, Ranking418Member Morrison and Chairman Williams and distinguished Members419of the Subcommittee. Thank you for inviting me today to testify420on how investments in digital infrastructure is revitalizing421rural America.422    My name is Chris Crosby, and I am the founder and CEO of423Compass Datacenters. After 25 years of working at the424intersection of technology and real estate development, I425founded Compass in 2011. We design, build, and operate the426customizable, scalable, and sustainable foundations of the427global hyperscale market.428    It is vital to distinguish our work from crypto farms or429transient AI factories. We build hyperscale campuses, enduring430civic infrastructure that supports the banking, cloud-431computing, AI, and social connectivity services Americans use432every day.433    We are in the middle of the most significant economic434transformation since electrification. Data centers are the43521st-century equivalent of the railroads coming. They are now436moving beyond traditional tech corridors into rural437communities. They are bringing substantial capital, jobs, and438infrastructure investment.439    There is an outdated myth that data centers only provide440temporary construction jobs. In reality, our campuses are 100-441year assets. They are part of the communities that they sit in,442and they are in a state of constant evolution.443    In Red Oak, Texas, the Chairman's district, our investment444has triggered a significant butterfly effect. We provide stable445work for roughly 1,500 construction workers during the decade-446long build-out and anticipate over 400 permanent, high-paying447jobs--operations, maintenance careers, technology careers--on448the campus.449    We anchored a new industrial hub by partnering with450Schneider Electric to build a 105,000-square-foot manufacturing451facility on our campus, in the middle of our campus, creating452an additional 350 jobs on the campus.453    Before our 2021 investment in Red Oak, new sales tax454business permits in the municipality grew at a meager 12455percent annually, which for north Texas is not doing very good.456Since we began construction, that growth rate has surged to 43457percent, compounding.458    Data-center campuses function as sustained economic459engines, creating a butterfly effect of new restaurants,460retail, housing, and other developments within the communities.461And if you have driven through Red Oak, Texas, you see the462bridges and the construction, the new schools, and everything463else that is coming along with it.464    On energy, large data centers serve as anchor tenants for465the grid. Our national grid averages just about 50-percent466utilization throughout the year, so by utilizing this underused467capacity, we help take those fixed costs across more468electricity sales and actually do put pressure down on the469rates for families and not small--and small businesses to pay470less.471    Let me be very clear on this point: Data centers pay more472so that families and small businesses can pay less. There are473scenarios where we are regulated to not be able to do that, but474that is not for want.475    At Compass, we go even further with our ``co-serve'' model.476To quote John Knight, the assistant director of economic477development in Red Oak, Texas, ``Compass builds redundancy into478our grid, supports our infrastructure. I love what data centers479are doing to improve our community's qualify of life,'' end480quote.481    We fund transmission lines, substations, and interconnects482through up-front contributions in aid of construction, also483known as CIAC payments, strengthening the local grid for484everybody.485    However, outdated regulations still limit our ability to486contribute even more.487    We need emissions standards that distinguish the cleaner488hydrotreated vegetable oil, or HVO, that we use--we pay more489for than diesel--from traditional diesel so that we can490stabilize the grid during emergencies without penalty. We don't491want black soot going in the air for our communities.492    We need the EPA to formally classify mandatory grid493curtailments as emergencies, allowing us to support the grid,494be grid resources during extreme weather events like this495coming week, without risking compliance violations.496    And we need regulatory flexibility to allow more proactive497private funding for long-term grid infrastructure--that is,498private funding for grid infrastructure.499    Compass is built to last, which is why we invest deeply in500our people and our communities. We partner with Texas State501Technical College to create a scholarship pathway into high-502tech, high-paying roles that don't require 4-year degrees. The503program is now scaling nationally. We are in our second cohort.504    We also work with veteran-focused organizations like505Overwatch and Salute to place skilled military talent in data-506center careers close to home.507    Environmentally, we preserve local resources by mandating508water-free cooling since 2012 to protect our agricultural water509supplies.510    In conclusion, Compass does not seek a free ride. We come511with a multigenerational commitment to prosperity in each of512our communities, ensuring that the AI revolution empowers every513corner of our nation.514    I thank the Committee for the opportunity to testify and515for your leadership on this important topic, and I look forward516to answering your questions.517    Chairman ELLZEY. Thank you, Chris.518    Now I recognize Mr. Offel for his 5-minute opening remarks.519520                    STATEMENT OF KIRK OFFEL521522    Mr. OFFEL. Good morning, Mr. Chairman. Thank you. Ranking523Member, Members of the Committee, thank you for the opportunity524to testify today.525    As an industry, we did not communicate early enough or526often enough about our data-center plans, and that created527avoidable concerns. We didn't clearly explain what we were528building, why it mattered, or how communities would benefit,529and we relied on the trust we hadn't yet earned.530    We are fixing it by increasing transparency, tightening our531outreach, and making sure every community and stakeholder532understands the mission, the safeguards, and the benefits. We533know trust is earned, and you will see that reflected in how we534engage moving forward.535    My name is Kirk Offel. I am the CEO of Overwatch, and I am536proud to be a Service-Disabled, Veterans-Owned Small Business537(SDVOSB). Before I ever set foot in a data center, I spent five538(5) years in the U.S. Navy, serving aboard the nuclear fast-539attack submarine USS Memphis.540    That experience taught me something simple: You don't541accomplish big missions with big slogans; you accomplish them542with small, highly capable teams who know how to execute.543    And that is exactly what is happening in the AI boom today.544Let me be blunt: Small businesses are the backbone of this545entire industry. I am saying the AI boom does not happen546without us, period.547    Today, more than 75 percent of the whole AI infrastructure548ecosystem is driven by small businesses. We are the ones549building the AI factories. We are the ones pulling fiber,550erecting steel, trenching conduit, fabricating components,551hauling equipment, running logistics, and delivering552professional services that keep projects moving.553    As our grid gets pushed harder than ever before, it won't554be a big company flying in from out of State fixing that. It555will be a local electrician, local line crews, local556engineering firms, and local contractors--small businesses that557actually understand the communities that they serve.558    We are going to see new small businesses pop up in559manufacturing--equipment rental, transportation, environmental560services, permitting, legal, security, cleaning, maintenance,561you name it. And all the indirect jobs--housing, food, retail,562childcare--all grow because of this work.563    And we have seen this before. Every major leap in American564infrastructure has had the same outcome: Small businesses565become the biggest winners. They grew with the railroad era.566They scaled during the electrification of America. They567expanded through the construction of the interstate system. And568they absolutely exploded during the automobile revolution. Each569of those moments didn't just change the country; they created570millions of small businesses that reshaped the American571workforce.572    And, today, we are living through what I believe is the573fifth industrial revolution--a revolution powered by data,574intelligence, and people who build and sustain the575infrastructure behind it. AI factories are no different. They576are simply the 21st-century version of those earlier577transformations, and they will become the next great engine of578American small-business growth.579    Let me put some numbers behind that. For every $100 billion580we invest in building digital infrastructure, we get $800581million in local tax revenue; 500,000 new jobs; $40 billion in582labor income; and that is a $140 billion boost to the U.S. GDP.583    Now I want to address the concerns we all hear: energy,584water, environmental impact, and job creation--all valid585concerns. They deserve our attention, and they are beginning to586get monitored very closely. But the answer is not to hit the587brakes. The answer is the same answer we used when we built the588railroads, electricity, cars, and the roads: We govern it, we589guide it, and we build it more responsibly.590    People forget this, but the first cars were horribly591inefficient, wildly polluting, incredibly dangerous, and brutal592on city infrastructure. So, what did we do? We built smarter,593we built safer, we set standards, and we improved efficiency.594    Progress doesn't happen because we avoid the challenge; it595happens because we take it head-on. That is the American way.596    Today, we have 5,400 data centers in the U.S. That is the597most in the world. Hyperscale capacity has doubled in the last5985 years, and we are staring down the barrel of $5 trillion in599construction over the next 5 years. The industry is on track to600triple by the end of the decade.601    And for the first time ever, we have the ability to602retrofit the past, to take older facilities and make them just603as efficient as the new data centers we build today. AI604factories are the most transformational infrastructure America605has ever attempted to build.606    Henry Ford enabled the movement of people and goods. AI607factories enable the movement of data, intelligence, and608services. And once again they are going to create millions of609small-business opportunities, just like cars did, just like the610railroads did, just like electricity did.611    But here is the part that matters the most, and this is612where my Navy background speaks up: If we don't build this613infrastructure here, if we don't scale it and if we don't614support it with American labor and American small businesses,615those jobs and that technology are going overseas. And they616will go to countries who have worse environmental standards,617less transparency, and strategic interests directly opposing618our own. This is not just an economic issue; this is a national619security issue.620    So, to the Committee, I will leave you with a piece of621history. Energy has never been a reason for us to stop; it is a622reason for America to lead. Growth isn't a threat; it is an623opportunity. And small businesses, they are not just part of624the story; we are the story. Empower us, and we will build the625next generation of American infrastructure. Fail to empower626small businesses, and we will fall behind nations that would627love nothing more than to take our place.628    Thank you, and I look forward to your questions.629    Chairman ELLZEY. Thank you, Kirk.630    Now I recognize Dr. Turner Lee for her 5-minute statement.631632              STATEMENT OF NICOL TURNER LEE, PH.D.633634    Ms. TURNER LEE. Chairman Ellzey, Ranking Member Morrison,635and distinguished Members of the Subcommittee, thank you for636the invitation to testify today.637    AI is changing the way we work, how we learn, get well, and638interact online, as well as emboldening other transformative639cases, like speeding up the development of scientific640discoveries and better evaluating climate impacts.641    But not all consumers have full access to AI, especially642those with limited internet access or who lack the digital643skills to utilize it in their lives.644    Rural communities, especially small businesses and farms,645have been historically left behind when it comes to646technological innovation and can benefit from what AI offers.647With vast topography, rural areas tend to have the land needed648to support physical data centers. Technology can create avenues649for economic development in rural areas that have experienced650declines in population and farming assets as well as651insufficient access to high-speed broadband.652    Data centers have gotten increased visibility as economic653drivers, but this will only be the case if they are built in654ways that are additive to the local community and bring limited655harm to residents and local businesses.656    In my testimony, I want to discuss the increasing explosion657of data centers but talk about how they require a national658framework for resources, security, permitting, and community659benefit.660    State and local leaders, business owners, employees, and661residents should participate in planning and implementation662together with technology companies, big or small.663    Communities must be actively involved at the onset of data-664center development and have transparency to assess the impacts665of electricity, water, noise and light pollution, jobs, land666use, tax revenues--all of which I detail in my written667statement.668    With the various types of facilities, including enterprise,669hyperscale, co-location, and edge, technology companies are670investing in larger facilities for greater computing power.671More compute requires more space, equipment, electricity, and672water, resulting in a set of unknown environmental hazards that673we have yet to realize.674    Some tech companies are greatly benefiting from the675explicit support of the President right now, whose favorable676stance towards more data centers to compete with China has677expedited permitting and bypassed environmental remediations as678part of the tenets of the AI Action Plan.679    However, the current administration has also threatened to680rescind federal funding to States if they stand in the way of681AI deployments. And just in December, the White House issued an682order making States ineligible for BEAD non-deployment funds if683they threaten such.684    Threats to States through moratoriums and lawsuits are685counterintuitive to the ultimate goal for having data centers686in the first place, leaving communities without agency in687conversations involving not just data centers but broadband in688their community.689    More importantly, we must listen to communities. Data690centers have been the central focus of some gubernatorial and691state legislature campaigns during recent elections in New692Jersey, in Virginia, and other places, where consumers saw693rising electricity rates coincide with unprecedented demand for694new data centers.695    A middle ground must be met to balance the needs of696advanced technologies with the demands of residents who just697seek clarity, buy-in, and oversight in these data centers that698are being built in their backyard.699    Further, communities should not feel the drain of data700centers on their natural and generated resources. And with the701environmental impact still largely unknown, we need to make702sure that the rollbacks that we made in the Biden-Harris703administration in terms of clean and renewable energy sources704do not have disproportional impacts in the future.705    What I will also say about job creation: Though we know706that the rate of jobs is temporary and, in some cases, will not707scale to the size of the data center itself, it is important708for the rural workforce to be involved.709    Right now, rural workers are lacking in areas of trade as710well as construction. These challenges offer opportunities for711government agencies, businesses, and local governments to712collaborate on solving those workforce shortages and rooting713training in ways that those people stay in the community and714become the pipeline for rural communities going forward.715    Data centers cannot be selective, as well, when it comes to716who works within the facility itself. Small businesses should717have the opportunity to bid on contracts for food services,718security, and maintenance.719    And if these jobs are primarily remote, we need to ensure720that broadband is available so that people who live in rural721communities do not have to go to, as I found in my book, local722hotels and 50 miles away to just access their jobs.723    There must be some foresight, my friends, about the long-724term impact on surrounding communities, the environment, and725overall resilience.726    This is especially important as fears over a potential AI727bubble escalate and feed the possibility of stranded assets in728communities that essentially have given the green light to data729centers along with millions of dollars in tax incentives.730    Communities should be asking about the plans for stranded731or deserted buildings, how they can be repurposed and better732integrated into the community, or else we are going to find733ourselves, like China, with a lot of idle buildings.734    I envelope my remarks around this idea that data centers735should be responsibly and ethically designed and built, and I736leave this Committee with my closing thoughts:737    Ensure early collaboration among all the utilities--energy,738water, and telecom, and even real estate.739    Develop community benefit agreements that resolve and make740major public concerns around data centers transparent.741    Focus on job creation.742    Consider smaller data centers when appropriate. They don't743need to be big.744    Create safeguards for communities and allow communities the745opportunity to say no when they want to say no, and they do not746feel that they are involved.747    Thank you again to the Members of the Subcommittee, and I748look forward to your questions.749    Chairman ELLZEY. Thank you, Doctor.750    We will now move to the Member questions under the 5-minute751rule. I will recognize myself for 5 minutes.752    Chris, Texas has emerged as a leading State for data-center753development because it has affordable land, it has plenty of754energy, and it has an understandable and relatively easy755regulatory climate.756    What else makes Texas attractive to data centers?757    Mr. CROSBY. The growable workforce that comes with it. You758know, as we continue to bring new people into the data-center759space, we call it the new-collar workforce.760    The ability to attract employment in Texas is fantastic.761And when we launched our vocational school in conjunction with762Texas State Technical College--I went through the first cohort.763You know, immediately the first class is all hired. The second764class is already pre-hired. That is going on right now. We765just--we have a workforce where we have youth, we have new766people coming in.767    And in these communities like Red Oak, the commitment and768the partnership with the local community really helps with that769front. You know, that can-do attitude in Texas has been770fantastic.771    Chairman ELLZEY. Well, if it is predictable, does that772reduce uncertainty for you long-term for these data centers and773their success?774    Mr. CROSBY. That is a great question.775    We look at things as--we don't exit. There is a big776difference if you build to exit versus build to last. You make777a lot better decisions, just like if you are going to remodel778your home and you build it to flip it--or, you remodel to flip779it versus you remodel to stay in that home. And that is where a780lot of great sustainability decisions get made.781    And we view ourselves as 100-year campuses. These782facilities will have multiple refreshes over that timeframe,783both from an IT/technology as well as from a mechanical and784electrical plan, and they are going to be long-term parts of785those communities. They are living, breathing, active machines786in those communities.787    So it is that--when you have certainty and you know that788you can have that, you can make the multibillion-dollar type of789investments that we make and look at it in the 40-plus-year790horizons that we look at it from an investment perspective.791    Chairman ELLZEY. And you mentioned John Knight. So you792built this data center with the encouragement and the793cooperation and the oversight of the local government, correct?794    Mr. CROSBY. That is correct.795    Chairman ELLZEY. So they are fully on board with everything796you are doing. This didn't need to come from Congress; this797didn't need to come from Austin. They did it themselves, and798they know you are going to be an integral part of the community799already, right?800    Mr. CROSBY. That is a huge part of our selection criteria.801We want to go to the places where people are.802    I can't speak for all developers. There is Class A803development, and there is not. But when you are doing the right804thing, you want to put long-term--you don't want to have people805picketing a site that you are planning to try to get somebody806to stay in for 30 years. Who wants to go work in a community807like that? We go to the places where they welcome the808investment, they welcome the transformation of their809communities.810    And, like I said, I think it is akin to having--you know,811the railroad was probably pretty loud back in the 1800s, and,812you know, the communities that passed on that, it didn't work813out so well for them. Those that passed on the Federal Highway814System, those that passed on the international airports in the8151970s, you know, it did not work out long-term for those816communities.817    And data centers are that now. We are--AI is like818electricity. We don't know all the applications that it is819going to be used for. It is a foundational tool, and it is820going to continue to create opportunities.821    Chairman ELLZEY. Speaking of opportunities, Kirk, tell me822about how veterans meet the threshold for what you are looking823for in these data centers.824    Mr. OFFEL. I appreciate the question, Mr. Chairman.825    You know, we talk about data centers because it is measured826in mission-critical. Mission-critical means that you could827quantify the downtime in dollars or death behind one (1) second828of lost infrastructure. I would argue that everyone that has829put on the uniform and took the oath has once entered into a830mission-critical environment that isn't measured in downtime,831but it is measured in their own mortality.832    The State of Texas and what Chris was saying and why it is833such a robust State--the sky for the cloud is northern834Virginia, but the home for AI will be Texas. It has more than835200 high-educational [https://ballotpedia.org/Higher--836education--in--Texas--1993-2016] platforms, 15 military bases,837and 4 of the most populous cities in the United States, not to838mention it has more natural resources than any other State in839the Union, including Alaska and Montana.840    So, we have the best access to the biggest workforce. There841is a massive amount of veterans coming out of the military that842have been exposed to the most advanced weapons, machines, and843technology ever built, and the military is best known for being844one of the largest leadership incubators ever built.845    So, we are not only--this industry does not--it is not846lacking genius or intelligence. It does lack leadership. It847lacks courage. And veterans are trained and conditioned and848pressure-tested in all three.849    So, I think that veterans have the highest likelihood--I850have three kids that are in college right now, and I tell them851that that college degree is about as useful as a taxi medallion852in a few years. Because you could spend four (4) years in the853military and find yourself with a higher demand of opportunity854that has the highest overall total earning potential versus855something that you could find today going to college.856    Chairman ELLZEY. Nailed it. Nailed it.857    Mr. OFFEL. Thank you.858    Chairman ELLZEY. Okay.859    I now recognize Dr. Morrison for 5 minutes of questions.860    Ms. MORRISON. Thank you, Mr. Chairman.861    Dr. Turner Lee, are data centers being constructed to meet862current demand or anticipated demand? And if the tech bubble863does pop, will these data centers still be necessary?864    Ms. TURNER LEE. Thank you for that question, Ranking865Member.866    I do think that data centers are necessary. I mean, the867current compute demand of AI is out of the box, right, in terms868of everything that we are doing in everyday as well as what we869are trying to do with future scientific discovery.870    I also think that it is still unclear whether we are going871to be able to grow these functions in the future into the872current data-center assets that we are building in the present.873    I think we need to have the type of assessments that are874done to sort of have some predictability in the marketplace of875how we are going to foresee that growth. But I also think that,876you know, there are other types of data centers that can be877built to accommodate what we are talking about with AI.878    Ms. MORRISON. Thank you for that.879    And what would happen to these data centers and the880associated jobs if the tech bubble does pop?881    Ms. TURNER LEE. One of my fears and we have written about882this at the Brookings Institution, myself and Darrell West, my883colleague--is that we do need to have programs that leave884workforce opportunities within rural communities after the life885of the data center.886    So it is particularly important that we have programs that887sustain themselves, where those carpenters and electricians and888welders are receiving training as well as recertification,889using AI, and they are able to bring that asset back into their890communities post--the life of this one infrastructure asset.891    Ms. MORRISON. Thank you.892    The Environmental Protection Agency has announced that it893will no longer consider the health benefits of reducing air894pollution in regulations--it is still shocking to say those895words--cutting human health protections in favor of the fossil-896fuel industry.897    I am a physician by trade, and I am deeply concerned about898the health impacts of air pollution. Given these rollbacks, how899could air pollution from fossil fuels and backup diesel900generators, spurred by data centers, affect public health in901rural areas?902    Ms. TURNER LEE. I definitely think the use of the word903``public health'' is meaningful in this conversation, I think,904given the community response to environmental concerns.905    With that being the case, as you have mentioned, the906rollback on the $11 billion of Biden-Harris investment towards907clean and renewable energies is a setback, and we want to make908sure that we are not setting back the progress. Because I think909most tech companies, including my colleagues here, want as much910electricity as possible and want it to happen to every911electron.912    With that being the case, when workers are sick in rural913communities because of these environmental impacts, small914businesses suffer. When young people are sick due to asthma and915other related environmental illnesses, they don't go to school.916And so, we want to make sure that we are not having a bigger917impact, I think, on the community, given the fact that we know918very little about the environmental impacts.919    Ms. MORRISON. Thank you for that.920    How much electricity and water does the smallest hyperscale921data center consume?922    Ms. TURNER LEE. Well, I will say this because I am not a923scientist by trade; I am a sociologist. But we do know924hyperscalers exceed and my colleagues can correct me if I am925wrong about 100 megawatts, in terms of electricity.926    We also have to consider the offsite electricity used. Some927tech companies are being responsible--we have seen that with928Microsoft in terms of trying to figure out ways to build929substations or take advantage of other electricity outlets.930But, again, it is not just the building where the electricity931is being consumed; it could be other buildings across the932community that have to power and generate the same amount of933power generate and consume the same amount of energy.934    Ms. MORRISON. And what about water? How much water is used?935    Ms. TURNER LEE. Yeah, the water issue is tricky as well.936Based on the data center's size, we still see continuous water937flow. Again, given the fact that there have been advancements938in science when it comes to closed loop systems or using939recycled water, I am excited about these opportunities.940    Again, water consumption is critical. Data centers must be941cooled. And if they are not cooled, it takes the whole942investment and throws it out in the wayside.943    Ms. MORRISON. I am glad you referenced that. So, depending944on what cooling systems a data centers uses--because they use945different ones--it may consume even more water or more946electricity.947    Can you just briefly walk us through the tradeoffs of each948type of cooling system?949    Ms. TURNER LEE. Well, we already know that we have an950outdated and archaic national water and irrigation system, so951that is a cause of concern.952    I also think what is interesting, too, is that we probably953need to use, Ranking Member, more AI to help us to monitor the954type of water that is going into these units, as well as ways955in which we can save residential households money, you know, by956the consumption.957    Communities adjacent to data centers are not getting the958best of AI when it comes to these water and energy consumption959measures.960    Ms. MORRISON. Thank you very much.961    And I yield back, Mr. Chair.962    Chairman ELLZEY. Thank you, Doctor.963    I now recognize Mr. Finstad from Minnesota for 5 minutes.964    Mr. FINSTAD. Thank you, Chairman Ellzey. Thanks for holding965this important hearing today.966    And thank you to our witnesses for being here.967    As the Representative from the First District of Minnesota,968a district that is founded on farming, healthcare,969manufacturing, and small businesses which have helped sustain970our rural areas, innovation is more than just a slogan to us;971it is a way of life.972    With the rising demand for artificial intelligence, data973centers are moving to rural areas, like the ones I represent in974southern Minnesota, because of the availability of land, our975climate--we are nice and cold, especially right now in976Minnesota--and our access to power.977    For my district, data centers can be economic anchors in978their regions, improving local supply chains and providing job979opportunities for skilled tradespeople.980    At the same time, I want to acknowledge the concerns that I981am hearing from my constituents regarding energy and water982consumption, affordability, grid reliability, particularly from983farmers and small-business owners and families. People want984assurances that new, energy-intensive developments won't985increase their utility bills or put a strain on local power and986water systems.987    This hearing today is about ensuring that rural districts988like mine are ready to take advantage of innovation while989solving real problems like labor shortages and energy security.990I look forward to the discussion today and learning more about991ways we can empower rural America to lead on this next wave of992innovation.993    So, with that, just a couple questions.994    Mr. Crosby, many of my constituents in southern Minnesota995are concerned, have questions, maybe just don't know for sure,996in regards to--I guess the question I hear is really, you know,997the big, energy-intensive facilities like data centers, they998are new to us. They may increase electricity prices or put999stress on our local grids. We just heard a little bit about the1000water discussion.1001    You have made the case that data centers can serve as an1002anchor tenant that reduces costs by spreading out fixed1003infrastructure costs and making up-front grid upgrade payments1004through contributions in aid of construction.1005    So what is your company doing to ensure that data centers1006and development in rural areas does not increase energy costs1007for community members and small businesses?1008    Mr. CROSBY. Thank you for your question.1009    We do not go to these environments and look for the1010environments to pay us on these. So we build infrastructure. We1011have bought land and transferred it to the utility company for1012easements. We have bought--we pay for transmission. We have1013paid for switching stations, substations, and the like. That is1014our infrastructure that we are utilizing.1015    Almost every single time, that involves additional1016infrastructure, such as in Red Oak, that other parts of the1017community can use that we pay for in order to bring it there--1018so additional switches on a switching station, as a for-1019example.1020    The other aspect to this is that we are trying to work, as1021well, with the regulatory bodies on trying to get data centers1022to become grid resources.1023    So we are going through this cold snap right now. During1024Storm Uri, if data centers had been allowed by law, and not1025threatened with criminal penalties, to operate, 12 people would1026not have died during Storm Uri in the State of Texas.1027    We can be stabilizing, distributed, islanded bodies. I will1028tell you, not 100 percent of my colleagues would say the same1029thing, but all of the Class A folks will absolutely look at1030that as, ``We can be the stabilizing factor for the grid.''1031    When we do that, we utilize infrastructure that is not1032being used right now, because it is, you know, 50-percent1033utilization when it is not during those peak timeframes.1034    So you have a very small amount of hours per year where, if1035we could be utilized by grid operators, we could actually1036reduce down-costs for consumers and stabilize the grid, with it1037being our nickel.1038    Mr. FINSTAD. Thank you for that.1039    Mr. Offel, in your opening comments, I think you hit the1040nail on the head when you talked about, we probably haven't1041done a good enough job explaining what the opportunities are,1042what the real economics look like, what the risk and reward is1043in this new emerging industry.1044    I like to say, around the halls in this town, you know, you1045start talking about data centers, AI, cryptocurrency,1046cybersecurity, and you get a glazed look over a lot of people's1047eyes. And these are policymakers that are hopefully in a1048position to educate themselves and make decisions on the very1049issue that we are talking about.1050    So, if we have a problem here in the halls of Congress1051understanding some of the details of what we are trying to do1052in this next generation of opportunities, it is easy to assume1053that our neighbors are having that same issue of understanding.1054    So maybe do you have some thoughts about how we as1055policymakers but how the industry is taking strides to make1056sure that we can talk to our neighbors about what does this1057mean in our backyard in regards to energy and water and the1058value that it adds to communities?1059    Mr. OFFEL. Yeah. Thank you, sir. And I appreciate the1060question.1061    I think this is a great opportunity for us to reshape the1062mindset and the way that we view this. So, I would ask you, as1063this Committee, to flip the binoculars around and open up the1064aperture and let us revisit this.1065    I think this is something that people tend to be very1066scared of, because some of these things that they have been1067introduced to, like some of the technologies you talked about,1068are very faddish, where what we are talking about today is a1069data center which will have--it is a transformational1070infrastructure that will have a greater impact on humanity1071since we have seen in powered flight. This is something that is1072coming, and it is coming to stay.1073    So, I think that if we can pause, I think that we can help1074people become more educated, and as we do that, they are going1075to become less fearful of what these data centers are.1076    And we shouldn't see them as a building. Data centers1077aren't a building. Look at them as a career field and an1078opportunity to build back the middle class with high-paying1079jobs that don't require college degrees.1080    Thank you for your question.1081    Mr. FINSTAD. Yeah. Thank you.1082    And, Mr. Chair, I yield back.1083    Chairman ELLZEY. Thank you.1084    I now recognize Ms. Goodlander from New Hampshire for 51085minutes.1086    Ms. GOODLANDER. Thank you, Mr. Chairman, thank you, Ranking1087Member Morrison, for convening this important hearing.1088    To our witnesses, thank you so much for being here today.1089    We are on a really good streak with this Committee, because1090yesterday we passed two commonsense, bipartisan bills that go1091to the core issues around small businesses and artificial1092intelligence.1093    And I couldn't agree more with my colleague from Minnesota;1094the Congress should be spending way--as much time as possible1095on this important issue. This is a transformational issue. We1096have never seen a revolution quite like this AI revolution.1097    You know, when we talk about data centers and other1098innovation-driven investments in rural areas--and I represent1099the most beautiful district in the nation, a very rural1100district, where I hear every day about the pain people are1101feeling from high costs across the board--my priority is to1102make sure that these projects, that these innovations, aren't1103going to shift new burdens and new unbearable costs onto1104hardworking people who are already feeling a whole lot of pain1105right now.1106    When we talk about energy costs and data centers, you know,1107I start from the premise that New Hampshire has some of the1108highest energy costs in our country. You know, this week, we1109are on track to have some of the coldest days of winter to1110date, and the people I represent cannot bear higher electricity1111bills, higher energy costs.1112    I appreciate the testimony of our witnesses so far.1113    Dr. Turner Lee, I wanted to ask you how you would advise1114Congress to think about the real ways in which data centers--1115what actions we can take to make sure that no costs are shifted1116in an inappropriate way onto people who just cannot bear the1117pain of higher costs right now.1118    Ms. TURNER LEE. Thank you very much for that,1119Representative. And I agree, affordability is a huge concern1120for many consumers that are resisting data centers to date.1121    It is important for Congress to continue to have the1122dialogues that we are having around updating and modernizing1123the energy grid. Clearly, this is a conversation of 20, 251124years ago, and we are putting on top of an outdated energy grid1125more resources that I think will continue to strain those1126communities.1127    It is important for public utility commissions to be at the1128table in these conversations because they set the rates for1129ratepayers.1130    And it is also important for tech companies, who are coming1131in and draining some of those assets, to talk with PUCs, local1132governments, and consumers, to figure out ways in which they1133can set clear standards and rates for what electricity should1134look like.1135    I mentioned earlier what Microsoft has done, for example,1136recently in their announcement about a community AI first, is1137to have set in certain rates that they pay, whether or not1138there is a variable increase or decrease in energy consumption.1139And we need to see more of that so that they are footing the1140bill as opposed to everyday Americans.1141    Ms. GOODLANDER. Well, I want to ask also about water1142security and water costs. Because when we look at utility bills1143in New Hampshire, what we have seen in so many of the towns I1144represent, particularly in the southern part of my State, big,1145foreign corporations have come into New Hampshire, polluted our1146water, eliminated our wells. The costs of clean water have1147never been higher in our State.1148    In your testimony, Dr. Turner Lee, you speak about water1149impacts as one that are--as impacts that aren't often fully1150understood until after a project has become underway. I hope1151you might be able to speak a little bit more about that, to1152your really important point that we need to be clear about the1153costs up front.1154    What can and should Congress be doing to make sure that we1155have clarity and that we are putting all of our tools to use to1156make sure that these important developments don't actually1157undermine a core function of government, which is to make sure1158we have clean water for our citizens?1159    Ms. TURNER LEE. I appreciate that question.1160    And as I have said in my oral statement as well as written,1161it is important that Congress support States and allow them to1162be part of the negotiating table. You know, when we put1163barriers for State leaders to actively think about how these1164data centers are positioned in their community, we burden them,1165as well, and we remove them from the table.1166    I think Congress should really move away from moratoriums1167and restrictions on the States to be actually involved.1168    I think community benefit agreements might be another way1169for us to negotiate these speculative opportunities that are1170being promoted to communities. Lancaster, Pennsylvania, for1171example, just did a $20 million community benefits agreement1172that also includes quality-of-life factors--air quality, water1173consumption, other educational assets, jobs.1174    We need to see Congress promote and support States actually1175engaging in those community benefit agreements, because I think1176it will get to the broader question that you are asking,1177Representative, which is, how do you just put everything in the1178bucket and make sure communities come out safe when this is all1179said and done?1180    Ms. GOODLANDER. Well, thank you so much.1181    I yield back, Mr. Chairman.1182    Chairman ELLZEY. Thank you.1183    I now recognize Chairman Williams for 5 minutes.1184    Mr. WILLIAMS. Thank you, Chairman.1185    Thanks again to the group for being here today.1186    Mr. Crosby, the data-center boom has led to some growing1187pains, especially in meeting the workforce demand. However, the1188industry is already taking steps to address this challenge.1189    Now, what steps have Compass Datacenters taken to build1190partnerships, including public-private partnerships, in career1191and technical education programs to address workforce needs?1192    Mr. CROSBY. Thank you for your question.1193    The Texas State Technical College and ourselves--we were1194looking for a partner to start a school. We scholarship the1195school. And then we brought in all of our partners, all of our1196suppliers, our customers, and our competitors that now all1197sponsor this program. It is called MEI. It is based in Red Oak.1198    We are now also donating a facility, a little later this1199year, on the campus to allow the students to have a place to1200practice it, in which our--not only our client but also our1201equipment suppliers are donating equipment for them to be able1202to work on it.1203    We plan to replicate this model in multiple markets where1204we have these levels of investment. These are, you know--when1205``all-in''-type investments are north of $20 billion, you need1206a long-term workforce.1207    This is something that we work very closely with--we have1208had great work with Ellis County, and Red Oak officials have1209been super-supportive of it as well. I think the private-public1210partnership is a very easy way to do this.1211    Mr. WILLIAMS. Okay.1212    How do you interact with local communities before beginning1213to build data centers to ensure they are an equal partner and1214valued stakeholder?1215    We have talked about communications. You can't have any--1216you can never be too short on communications. So----1217    Mr. CROSBY. That is right. The challenges that have been1218brought up by the doctor are not--I would say they are not very1219common today, but they are still--I mean, they still come up.1220And when you do not engage with these communities properly--so,1221for example, when we walk into a community, a lot of people1222have a myth that these are going to use a lot of water. It is1223not true. We don't use water at our facilities for those1224purposes.1225    So we will end up in these meetings. We engage with the1226community. We sit in the meetings with the hearings, the public1227hearings, answer their questions. Our most recent one we had in1228Statesville, North Carolina, we had people that had ``No''1229stickers that took their ``No'' stickers off at the end of it1230as they learned more facts.1231    The key is education, and the key is doing the right thing1232for that community. That means you have to be built to last.1233You cannot be built to exit in this business.1234    Mr. WILLIAMS. Yeah. Sometimes you get one crack at it, and1235you have to get it right.1236    Mr. CROSBY. Yes, sir.1237    Mr. WILLIAMS. Mr. Offel, the growth of the data-center1238industry has brought massive demand for tradeskills. We have1239been talking about that all day here. However, the demand for1240electricians, HVAC technicians, and plumbers has outpaced1241supply. And I know, in Texas, we are short of welders; we1242always are short of welders.1243    Now, your business, Overwatch Mission Critical, is actively1244working to address this problem. What methods have you found1245most effective in developing the necessary workforce to grow1246this economy and your industry?1247    Mr. OFFEL. Thank you for the question, Mr. Chairman.1248    It is simple. We have tried to approach this from multiple1249dimensions.1250    One was with a bunch of Band-Aids. We tried to figure out1251how we can transfer people that were in adjacent verticals of1252industry into this industry. And we realized that the adoption1253rate of emerging technology, specifically driven because of the1254surge of AI, has allowed us to discover that that strategy is1255no longer tenable.1256    I am at a point right now where we need to create another1257apprentice program. This is the fifth utility. This is the1258fifth utility. We need to have an apprenticeship and journeyman1259program associated just to this. We needed our own, dedicated1260apprenticeship program.1261    And we have partnered with a group, a small business--1262veteran-owned small business in Dallas, Texas, and we have1263partnered with them to create an incubator that could put 1,2001264people through that program a year that will be certified in1265data centers. They could join the workforce immediately and be1266a data-center apprentice.1267    Mr. WILLIAMS. There are 10,000 kids a year dropping out1268of--or, 100,000 kids a year dropping out of school in Texas in1269the ninth grade. They are losing hope. And we have to be able1270to show them that it is not about being architects,1271businesspeople, whatever. Plumbers, welders, carpenters,1272technicians. It is important you do this because we can save a1273lot of kids who are now dropping out of school and we are1274losing them.1275    So thank you for----1276    Mr. OFFEL. The largest demand for labor is in this1277vertical. This industry grows faster than every other industry1278on this planet because of the growth of every other industry on1279this planet.1280    And there is no sense sending our kids to college for data1281centers. Whatever they would be exposed to or learn their1282freshman year would be obsolete by the time they graduated.1283    There are 6-week, 12-week, and 18-week programs that are1284designed for high-school kids, as well as the 17,000 people1285leaving the military on Active Duty every month. There is a1286large, massive workforce of trained people coming out of1287military that we are looking to adopt. And those people will1288help us lay out a roadmap to where we could support people1289transitioning right out of high school.1290    They just don't know the industry yet. And, right now,1291everybody is telling them that they need to be scared about it.1292We need to fix it.1293    Mr. WILLIAMS. Well, in the time remaining, take it to them.1294Because there are these 100,000 kids who need to have an1295opportunity, and they will hire their friend too.1296    Mr. OFFEL. Yes, sir.1297    Mr. WILLIAMS. Mr. Chairman, I yield back.1298    Chairman ELLZEY. Thank you.1299    I now recognize Mr. Olszewski from Maryland for 5 minutes.1300    Mr. OLSZEWSKI. Thank you very much, Chairman Ellzey, to1301Ranking Member Morrison, and to all of our witnesses today. I1302appreciate your time and your presence.1303    My district in Maryland is home to many beautiful rural1304communities in both Baltimore and Carroll Counties, which1305affords our State flourishing farmland and engaged small1306businesses.1307    Agricultural preservation is a top priority for our1308district. Since 1980, Carroll County alone has preserved nearly130981,000 acres, with over $200 million invested. Prior to coming1310to Congress, as Baltimore County executive, I helped push our1311number to over 71,000 acres of farmland preserved.1312    In Maryland, our farms account for billions of dollars of1313economic activity. They are a critical part of our history and1314our economy.1315    Although we do not currently have a data center in1316Maryland, there are plans to have one under development in1317Frederick County, and others are being considered across our1318State.1319    For more than a year now, Baltimore, Frederick, and Carroll1320Counties have been contending--frankly, fighting--a proposed132167-mile high-voltage transmission line, known as the Maryland1322Piedmont Reliability Project, or MPRP, needed to fuel power in1323data centers in northern Virginia--power that we worry,1324frankly, is simply being transferred from Peach Bottom,1325Pennsylvania, to northern Virginia.1326    Sadly, our questions to clarify this have gone completely1327unanswered, both by PJM and by the project's developer. Worse,1328eminent domain has been proposed. So, unfortunately, that1329``reliability'' doesn't seem to cover the Maryland rural1330communities who are facing the project's burden.1331    Even worse, to Ms. Goodlander's point, the cost of this1332project, $424 million, would fall on Maryland ratepayers--1333ratepayers who are already crushed under a cost-of-living1334crisis and increasingly high utility costs in our State.1335    I understand that transmission lines play a role in1336modernizing the electrical grid. However, my constituents and I1337have been very vocal in expressing these concerns.1338    Our communities have worked for decades, with millions of1339local and State dollars invested, to conserve this land for1340future generations, to preserve the economic activity on these1341lands. Now they are being told it must be sacrificed and their1342livelihoods disrupted for a transmission line that won't even1343offer them benefits, and yet these constituents are being asked1344to pay for it.1345    I guess I would just open with a question for all: Is that1346fair? Does that make sense?1347    Ms. TURNER LEE. Well, I will start, Representative. And I1348want to also say to you, Maryland does have beautiful farmland.1349I spend a lot of time in Garrett County, Maryland, as part of1350my book with farmers as well as small businesses,1351entrepreneurs, and residents.1352    The transmission line project I do write about in my1353written statement, and I think it is one of those examples1354where we do see a lack of coordination between all the actors1355and--I do agree with my colleagues--a lack of transparency when1356it comes to information about what is being done and what is1357being built.1358    The revenue should come on the side of the companies, not1359the taxpayers.1360    Mr. OLSZEWSKI. Yep.1361    Ms. TURNER LEE. Because the revenue that comes from the1362companies can take those communities, even though they don't1363have a data center--but they can possibly build, you know, a1364better school, a better firehouse, better broadband for that1365matter.1366    I do say to you, I do not think it is fair that the1367community is left in the dark and is going through several1368challenges to understand why, when, how this project is going1369to pan out for them.1370    I appreciate that and you including it in your written1371testimony.1372    Gentlemen?1373    Mr. CROSBY. Yes. Thank you.1374    Look, I agree with a lot of your points. I don't think it1375is fair for us to come to communities and just say, it is on--1376you know, it is on you as a community. Those days were decades1377ago.1378    Mr. OLSZEWSKI. Yeah.1379    Mr. CROSBY. There are a lot of new players that are doing1380that sort of technique. And check their capitalization and1381check their track record--that is what I would say--if you are1382a community looking at these groups.1383    The other thing I would state is, this should be a very1384bipartisan issue. Transmission upgrade is absolutely necessary.1385When we transmit electricity at 69 kV, 130 kV, 90 percent of it1386is lost in the air versus high voltage.1387    Mr. OLSZEWSKI. Yeah.1388    Mr. CROSBY. Ninety percent. That means we don't have to1389produce more generation. That means we have generation that1390just gets wasted.1391    And this is one of the biggest things that we should--that1392all parties should rally around. We need to upgrade this. That1393is the easiest, cheapest way for us to do things.1394    Mr. OLSZEWSKI. Yeah.1395    Mr. CROSBY. And data centers want to contribute to that.1396Come to any of our locations and you will see that brand-new1397transmission and----1398    Mr. OLSZEWSKI. And I appreciate the consensus.1399    Just with my 30 seconds left--and, Mr. Offel, hopefully I1400will give you a chance to respond as well--but I just want to1401put on the record, Mr. Chairman, a 2024 ``Lazard's Levelized1402Cost of Energy'' report as well as a NextEra Energy's 20251403investor presentation. I ask unanimous consent to enter those1404into the record.1405    Thank you very much.1406    I just want to point out that renewable energy projects,1407according to these, are both cheaper and faster to get built to1408help fuel this need. So I appreciate our opportunity to look at1409that.1410    And I apologize we didn't get to you on the answer there,1411but I really appreciate your testimony.1412    Thank you. I yield back.1413    Chairman ELLZEY. I now recognize Mr. Schmidt from Kansas1414for 5 minutes.1415    Mr. SCHMIDT. Thank you, Mr. Chairman.1416    And, like my colleagues, I want to thank our witnesses for1417being here today. It is a topic not new to you but still very1418new to many of the communities that we represent, and, like a1419lot of new subjects, as has been suggested here today, it tends1420to present itself in different ways in different communities.1421    And I have listened carefully, during the time I have been1422here, to some of the suggestions and responses you have had1423regarding questions about community engagement, which I1424appreciate very much. But let me ask just a much more, sort of,1425global question on that.1426    So I came out of State government. I am a State- and local-1427control person philosophically, and I believe it in my bones,1428and I am certainly not advocating something different here.1429    Having said that, one of you, at least, compared in your1430written testimony the development of the data-center industry1431to the development of the railroads. And, obviously, 150 years1432ago, that was a nationalized policy conversation that resulted1433in national control, some of which, you know, we still deal1434with the downstream effects of that today, but it also created1435a tremendous industry.1436    And I guess I would just ask you to speak, either with1437particularity or philosophically, about, as you look forward,1438how this industry is going to grow. What is the right balance1439between federalizing some of these decisions, standards,1440requirements, and leaving it to those case-by-case local1441advocacy decisions?1442    And we can just go down the row.1443    Mr. Crosby?1444    Mr. CROSBY. Thank you.1445    Look, I believe the local is always the first approach. You1446know, there were comments about water and water usage. Those1447are negotiated locally. Those are not negotiated on a big1448basis. So those communities are making those decisions live,1449and we see that.1450    The State of Texas has an advantage, in some ways, because1451FERC is not engaged with some of the things, and the ability to1452adapt technology is a little bit faster to try new things.1453    I think speed is one of the elements, where there is an1454aspect where you are continually making adjustments,1455continuous-improvement type of items, as you get feedback from1456these sorts of infrastructure investments.1457    We are putting in massive amounts of capital into the1458ground and into the wires that are going ahead, building1459plants. Renewables was mentioned. Data centers have been--data1460centers and data-center users have been responsible for over 701461percent of the PPAs that are around renewables.1462    We are driving change. We want to do the right thing. The1463top companies definitely do. And let us work with those1464communities to continue to innovate and come up with these new1465and creative ways to do things.1466    Mr. SCHMIDT. Mr. Offel.1467    Mr. OFFEL. Yes, sir. Thank you for the question.1468    Just to put a pattern together for a bit of history, when1469we started with the first major infrastructure upgrade in1470America, the railways, the number-one concern was energy, and1471the number-two was environmental impact.1472    And when we did the electrification of the grid, the1473number-one concern was energy, and the number-two was the1474environmental impact.1475    The third was the Interstate Highway System, and the fourth1476was the automobile. And, in every case, the primary theme has1477always been energy and what is the impact on environment. And1478now we are evolving too, what are the jobs that are being1479created as a byproduct of these vertical industries that are1480emerging?1481    The things that take an industry like ours, which is1482niche--and, today, this represents the fact that we are now in1483the mainstream--is industries that--like the automobile1484industry, when we were rolling those cars out on the road, they1485lacked safety, regulation, oversight, governance, regulation,1486and, many would argue, ethics--some of the same things that you1487are challenging us on, and justifiably so, today.1488    The answer is, we have a partnership with you. We must be1489working with all elements of levels of government. And we need1490to be able to make sure that someday you understand that we are1491no longer consumers of your utility, we are creators of it,1492making us partners of it.1493    We will be able to reinforce--and I think in your district,1494what he was talking about was to have the ability to island1495ourselves. If we have, since the birth of this vertical, 551496gigs of energy on the grid, we are under construction today for149740 to 80 gigawatts of natural renewable energy, meaning that we1498will not only put our own energy on the grid and tie it into1499the grid in a closed transition, allowing us to co-generate,1500that gives us not only the ability to move the needle to the1501left, but we reinforce that grid so that the people that are1502out in the urban areas aren't at risk of losing power, because1503data-centers providers are the ones that are building it.1504    And, today, with the exception of a few misfit toys, we are1505at zero-water design on data centers. We don't use water, for1506the same reason you don't use water in your radiator, which is1507a closed-loop system. It doesn't absorb and reject heat fast1508enough. These data centers are so dense that we can't use1509water.1510    So, we are here to partner with you on creating more water,1511and we are partners to the utility. We will become a utility1512ourselves.1513    Mr. SCHMIDT. Doctor, I have 10 seconds.1514    Ms. TURNER LEE. Yeah, just 10 seconds.1515    I actually challenge the railroad analogy, so I will start1516there, because I think we need to think about the railroad as1517it allowed rural communities to become transit points for the1518way in which we were actually moving trade, and data centers1519that actually may be incentivized to bring more profit to1520companies versus people.1521    I want to actually challenge that, because I think AI needs1522more industrial policy, in many respects, to ensure that we get1523national benefits.1524    I would just say outside of just the energy policy for the1525Congress, it is important for Congress to also create a certain1526environment in the marketplace. Tariffs, the availability of1527critical minerals, our availability to have the aluminum that1528is going into the buildings--it is all uncertain right now. And1529I think those costs could actually be passed on to communities1530if we actually don't get the certainty of the marketplace right1531in terms of our congressional policies.1532    Mr. SCHMIDT. Thank you.1533    I yield back, Mr. Chairman.1534    Chairman ELLZEY. Thank you.1535    I now recognize Ms. Scholten from Michigan for 5 minutes.1536    Ms. SCHOLTEN. Thank you, Mr. Chairman.1537    Dr. Turner, every 2 years, we pass a bipartisan Water1538Resources Development Act, which authorizes the Army Corps of1539Engineers to address water supply needs and carry out vital1540infrastructure products.1541    I am happy to report that the Committee has been hard at1542work to develop the seventh consecutive bipartisan WRDA to1543navigate local water resource challenges, boost regional1544economies, create jobs, and protect our natural environment.1545    What is the importance to our rural communities that WRDA1546is passed in a bipartisan fashion?1547    Ms. TURNER LEE. It is extremely important. I have nothing1548else to say. But I think we do need to keep passing this,1549because that is actually going to allow us to negotiate through1550some of these challenges that we have been talking about today.1551    Ms. SCHOLTEN. Absolutely.1552    The few operations jobs that data centers create require IT1553expertise, meaning individuals in career and technical1554education--careers in technical education will be increasingly1555in demand.1556    Last week, I introduced my bill, the Honoring Vocational1557Education Act, which would permanently establish a survey on1558education attainment within the skilled technical workforce. It1559is critical to advancing and maintaining a skilled workforce.1560We have to ensure that skilled tradespeople and technical1561workers are fully accounted for in federal workforce data,1562especially when these jobs are becoming so critical to building1563and supporting innovation.1564    Again, Dr. Turner Lee, what is the role of career and1565technical education in ensuring that these local jobs can be1566filled and created as data centers are developed?1567    Ms. TURNER LEE. I completely agree with you. A couple years1568ago, when we had the BEAD money, I did the same thing with1569broadband, because these are livable wage jobs.1570    Ms. SCHOLTEN. Yep.1571    Ms. TURNER LEE. They are jobs that we need to build the1572infrastructure. Just as the Hoover Dam, we had to build that1573dam, we had to find workers to do the same thing.1574    I think we need to continue to invest in technical1575training, but I also want to make sure that there will be jobs1576that have some IT slant to it, because technical jobs--even1577your greatest plumber has to rely upon AI in some way or form1578to do their job.1579    And so it is important for us to balance that--how do we do1580the acute, you know, faculty skills alongside making sure rural1581communities and rural citizens know how to actually maneuver1582through AI itself.1583    Ms. SCHOLTEN. Absolutely. They go hand-in-hand----1584    Ms. TURNER LEE. They do.1585    Ms. SCHOLTEN.--and have to be developed together.1586    One last question for you, Dr. Turner Lee: In your1587testimony, you discuss the importance of ensuring early1588collaboration between utilities, local governments, and their1589rural communities.1590    Just last month, in my district, a planning meeting for a1591data center in Kent County was canceled due to overcapacity,1592with hundreds of residents showing up to make their voices1593heard in these discussions.1594    How can we, as Members of Congress, help facilitate and1595support these conversations to ensure that residents aren't1596left in the dark as planning for these data centers continues?1597    Ms. TURNER LEE. Well, I want to agree with my colleagues,1598particularly the--my colleagues who are in a space where they1599are working every day with some of these local communities. And1600I commend them on the efforts that they have put forth.1601    I do think Congress should put out some type of data-center1602literacy act----1603    Ms. SCHOLTEN. Uh-huh.1604    Ms. TURNER LEE.--something that allows people to know that1605this next stage of innovation, if we are comparing it to the1606railroad, is an all-in project.1607    Ms. SCHOLTEN. Yeah.1608    Ms. TURNER LEE. Everybody needs to be at the table.1609    I think we are seeing these rooms full to capacity because1610people are really worried. They are worried about the things1611that they know based on what the media is telling them, and1612they are worried about the things that they do not know.1613    Ms. SCHOLTEN. Yeah.1614    Ms. TURNER LEE. It is an easy fix if we find ways to raise1615their literacy around what data centers are and what they do.1616    And I actually would say that we connect this to AI1617literacy bills----1618    Ms. SCHOLTEN. Yeah.1619    Ms. TURNER LEE.--so people know that when there is a data1620center in your neighborhood, there is a benefit to you as1621well----1622    Ms. SCHOLTEN. Yeah.1623    Ms. TURNER LEE.--and, you know, what you can access and do.1624    Ms. SCHOLTEN. Absolutely. I am already working on something1625like that with one of my colleagues from Michigan. We would1626love to run it by you, get your input on it as well.1627    So thank you so much for your testimony.1628    I yield back.1629    Ms. TURNER LEE. Thank you. I look forward to working with1630you.1631    Ms. SCHOLTEN. Thank you.1632    Chairman ELLZEY. Thank you.1633    I now recognize Mr. Wied from Wisconsin for 5 minutes.1634    Mr. WIED. Thank you, Mr. Chairman.1635    Thank you to all of the witnesses for being here today. We1636appreciate the work each of you are doing to shape the future1637of America's digital infrastructure and the communities that1638support it.1639    Across the country, we are seeing a rapid growth in data1640centers, driven by the accelerating demand for AI.1641Increasingly, these facilities are choosing rural communities,1642creating new opportunities in skilled trades, construction, and1643facility operations, offering a pathway to stable, middle-class1644careers in regions that have too often been left behind.1645    At the same time, this expansion brings real challenges,1646from meeting the energy needs of these facilities to the1647increase in workforce demands.1648    Small businesses are central to this story. They are the1649contractors, suppliers, and service providers who make these1650projects possible and who stand to benefit long after1651construction ends.1652    As AI demand centers continue to grow, it is my hope that1653we can find solutions that balance the needs of tech1654entrepreneurs while also protecting the rights and the voices1655of, of course, our local communities.1656    Mr. Crosby, I will start with you. In your testimony, you1657said that data centers act as anchor tenants that put downward1658pressure, actually, on electricity rates. And that is one of1659the biggest concerns. We have a project in northeastern1660Wisconsin that was--you know, the local, the community was1661very, very involved. That was one of the big concerns, is1662electricity rates.1663    Could you expand, walk us through, you know, how rural1664taxpayers actually could see savings?1665    Mr. CROSBY. Yes. In States where it is not regulated that1666they have to share everything with consumers--so there are1667States and regions in the country that it is forced to be1668shared, so even if you wanted to foot your own bill, you are1669not allowed to foot your own bill; it is forced onto consumers.1670    In those other States that that is not the case, you can--1671one is the connection interconnect charges. That is paying to1672bring the power to you. That is what we pay for, those charges1673to do that.1674    The second is, how do the rates come down? So keep that1675first cost off, of bringing the transmission to you. Now, how1676do the rates come down? Because if we can utilize existing1677infrastructure--the grid runs at about 50 percent right now.1678And if we can use that infrastructure for the vast majority of1679the year--in a State like Wisconsin, you might have 20 hours a1680year of peak power, out of 8,760 hours. That means we could be1681utilizing that capacity and then island ourselves during those1682times where the grid operator says, ``It is a tough1683environment. Go ahead and come off the grid. We don't want1684consumers to--we don't want there to be anything to hurt the1685grid.'' That is a grid stability.1686    If you are using infrastructure that is already built and1687paid for, it will drive down costs for consumers. We have seen1688that. Southern Company, Chris Womack's company, they put out a1689report there about that. PGE put out a report, Maria Pope.1690    We work very closely with utilities--EPRI, EEI. We are1691trying to get the regulatory environments to allow us to pay1692for what we want--pay for the power that we want to use and1693help us drive down these costs.1694    Mr. WIED. You also mentioned--another thing that I have1695heard a lot with this most recent one in our community is1696depletion of the aquifer.1697    You mentioned that Compass mandates water-free cooling1698technology to protect agriculture water supplies. Can you1699explain what that looks like in practice?1700    Mr. CROSBY. Yeah. I grew up in the State of Texas. Water1701has always been a precious resource. We were one of the very1702early adopters of saying no water. A lot of evaporative cooling1703was used in the space.1704    That got eliminated several years ago but for a few, as1705Kirk likes to say, misfit toys and then some that are using1706evaporative cooling but creating water-positive environments,1707where they are investing in and replenishing aquifers more than1708what they use.1709    I do not think it is a valid claim anymore to say with a1710blanket statement that data centers use water. I reject the1711premise of that.1712    Mr. WIED. Let's go to Mr. Offel.1713    I think you--well, you acknowledged that the industry1714hasn't communicated very well with local communities. And I1715feel, you know, we don't want them blindsided.1716    And so, from your point of view, what is--no question, we1717need early engagement, and engagement is very important in1718these types of things. What does early engagement look like to1719you? How do we ensure that rural residents, they feel informed1720rather than blindsided?1721    Mr. OFFEL. That is a fair question. And their concerns are1722extremely valid. We are not trivializing those. The only way to1723solve it is with immersion.1724    There are three different types of audiences that we need1725to address. There is no silver-bullet answer that will make1726everybody happy.1727    We need to convert the way that we view these things as1728something that is just a consumer of utilities, and we need to1729help them understand what AI means to them as a human beings,1730how does it help them.1731    As a small business, AI gives me the ability to compete1732against the Goliaths of this world, because it level-sets the1733playing field. Plus, for those people that want to be in the1734game, it opens up better career opportunities, because it1735lowers the barrier of entry to market for new jobs.1736    Mr. WIED. Thank you, Mr. Chairman. I yield back.1737    Chairman ELLZEY. Thank you.1738    I will now recognize Dr. Morrison for her closing1739statement.1740    Ms. MORRISON. Thank you, Mr. Chairman. And congratulations1741on a very amiable hearing. I think this has been a really1742interesting and important conversation.1743    And I am grateful to the witnesses for your presence.1744    You know, we have talked about the good, the bad, and the1745ugly, in some cases, parts of the data-center boom. It is a1746very nuanced topic. And there are so many ways that data1747centers play with existing issues, such as tariffs, which are1748crushing our main streets and industries--we have recent1749evidence that supports what economists have been saying from1750the beginning of this chaotic tariff war, that Americans pay1751them in taxes; 96 percent of tariffs have been paid for by1752Americans over this past year--and the immigration crackdown1753choking our workforce and entrepreneurs and, as someone from1754the Twin Cities, literally terrorizing our communities.1755    I intend to submit further questions for the record. I hope1756to keep the conversation going down the line. There is so much1757to discuss.1758    Thanks so much, again, to the witnesses for your insights.1759    And, with that, I yield back.1760    Chairman ELLZEY. Thank you, Dr. Morrison.1761    I recognize myself for a closing statement.1762    I am so proud to have data centers in my rural community1763just south of Dallas.1764    There was a lot of concern at the very beginning about what1765does this mean, this new technology, this new horizon of ours1766in technology and AI and everything that goes with it. I1767understand the fear of some of my colleagues on particularly1768the Eastern Seaboard, which is stretched thin with energy,1769power, and water and lines and so many other things.1770    I am here to tell you that if you are interested in seeing1771what they really do, how they really contribute to our1772communities, Doctor, come visit us in Red Oak and Midlothian1773for a couple days, stick around. These gentlemen would be happy1774to host you, and so would I.1775    As I look at the city of Red Oak, which is growing by leaps1776and bounds because of industry coming there, a talented1777workforce--all of the people in that community are benefiting1778from these data centers coming to them, from construction, from1779flipping burgers, from Walmart, from Brookshire's, to1780homebuilders, to everybody else in between, and a strong,1781stable tax base to provide excellent schools, excellent public1782schools for our kids.1783    They are not drawing on the water. They are adding to the1784power. They are adding security in a lot of rural communities1785that, in many cases in Texas and elsewhere, those rural1786communities are looking for a reason to survive, and many of1787them are struggling. This new technology gives them an1788opportunity to do so. They are doing so responsibly, with the1789cooperation of State and local governments. And they are an1790incredible benefit to the State of Texas and to Red Oak,1791Midlothian, and Ellis County.1792    So I want to thank everybody for participating in this1793robust discussion today. It has been a fantastic hearing. I1794hope it generates more discussion going forward. Thank you all1795for being here.1796    And, without objection, Members have 5 legislative days to1797submit additional materials and written questions for the1798witnesses to the Chair, which will be forwarded to the1799witnesses.1800    I ask the witnesses to please respond promptly.1801    If there is no further business, without objection, the1802Committee is adjourned.1803    [Whereupon, at 11:22 a.m., the Subcommittee was adjourned.]18041805                           A P P E N D I X18061807[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]18081809                                 [all]