On Monday, Doug Burgum, the Secretary of the Interior and Chairman of the National Energy Control Council, participated in a policy discussion titled “Leveraging America’s Power,” hosted by Breitbart News. During this event, he expressed a strong belief in America’s technological leadership, but also shared concerns about obstacles to establishing AI data centers.
Burgum remarked, “We’re not worried about our technological capabilities. Our concern is really about the need to ‘build, baby, build,’ especially since several states have imposed restrictions on AI data centers. It’s not just a local issue.” He pointed out that the influx of foreign funding has changed the narrative around climate change, suggesting that it’s no longer a priority for those fighting against it.
He continued, “Look — Bureaucratic overreach! There are a lot of elections happening in states where people depend on affordable electricity. Data centers haven’t been constructed in those regions, and it seems they never will, primarily because these facilities are unlikely to be established where power costs are two to three times higher.”
As he elaborated, he made an analogy: “A century ago, you wouldn’t place a flour mill in an area lacking water or electricity, especially where wheat prices were exorbitant. It just doesn’t make sense.” He criticized the arguments against building data centers, labeling them as dubious.
Burgum reflected on a project from his tenure as governor in North Dakota, which he believes underscores the potential benefits of data centers to local communities. “When I was governor, we set up a $1.2 billion data center in a town with only 800 residents. What happened to electricity rates? They actually went down,” he stated. “It might sound counterintuitive, but introducing AI requires substantial electricity, which usually means costs go up. However, we brought in a fixed cost structure through the grid, attracting new customers who paid premiums, allowing us to cover the utility bills for all 800 local farmers and residents.”
He also mentioned that the data center developers committed to addressing housing concerns raised by the community. “When the townspeople worried about housing costs going up, the data center builders, investing over $1.2 billion—more than the county’s entire tax base—responded that they would construct 30 new single-family homes. They didn’t need special incentives.”
Local officials later confirmed to Burgum that the builders never rejected their requests. “When I asked them if they had ever heard ‘no’ from a data center builder, they replied ‘no.’ I then inquired why, and they told me it was because I hadn’t asked enough questions,” Burgum stated. He jokingly added, “I should’ve asked for a new gym or uniforms. It seems there’s quite a bit to gain from intelligence manufacturing.”
He concluded with an optimistic view, saying, “There’s definitely a viable way to make this work across the country. It’s not about voodoo economics or subsidies; it’s simply about utilizing a fixed cost structure and bringing in new customers.”
