Strangely, we were blessed with two straightforward and sensible takes from prominent Republican leaders on Monday. First, President Donald Trump made a full-throated defense of data centers. Next, Sen. Rick Scott (R-FL) wrote an op-ed defending the U.S. dollar as the global standard currency.
“The only reason that communities throughout the U.S.A. should not want Data Centers is if they want to end up being backwards and poor,” Trump posted on Truth Social. “If they want to be successful and rich, with far lower taxes and jobs all over the place, let Data Reign. The good news is that there are plenty of other places that want them. If we kill the Golden Goose, you will only have yourselves to blame.”
Trump has been remarkably consistent on data centers. Indeed, as we engage in the artificial intelligence arms race with China, history may remember Trump’s tech sector support as one of the most consequential pillars of his second term.
Sadly, opposing digital infrastructure is as bipartisan as it is nonsensical. After initially courting tech investment, Gov. Greg Abbott (R-TX) ordered an audit of all data centers connected to the Texas grid and placed a pause on all new connections. Texas Attorney General Ken Paxton (R), who is running a floundering campaign for the U.S. Senate against radical Democrat James Talarico, has proposed regulations that would hold data centers criminally liable for the AI outputs of their customers. Paxton has also advocated strict state-level caps on energy usage. Gov. Kathy Hochul (D-NY) enacted a one-year statewide moratorium on converting defunct power plants to data centers on the basis of saving the state’s ridiculous clean-energy mandates. Gov. Josh Shapiro (D-PA) recently pivoted hard from his previous pro-tech rhetoric and issued an executive order placing new environmental regulations on data center development. Axios reported that China has been secretly funding the “grassroots” opposition to data centers.
Scott’s argument was also important. Vice President JD Vance recently appeared to condemn the U.S. dollar’s global currency reserve status. “I think in some ways you can argue that the reserve currency status is a massive subsidy to American consumers, but a massive tax on American producers,” Vance said. But Scott noted that King Dollar doesn’t serve the interests of nefarious “globalist elites,” it lowers domestic borrowing costs, protects consumers against runaway inflation, and serves as America’s ultimate geopolitical lever.
There’s a lesson here. Namely, that populists often accurately identify potential problems only to then offer flawed solutions to those problems. Data centers use a lot of power, for example. But increasing the nation’s power capacity would render this issue null and void. These centers also dramatically lower property taxes by expanding local tax bases through high-value property, expensive equipment, and, of course, adding jobs. There are environmental questions that are of extreme importance to hunters and anglers like me. But America has a lot of space.
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Monday’s double header from Trump and Scott is compelling. It highlights the limits of political theater. Theories that sound great on a podcast or in a primary often fall apart when they meet reality. Data centers are inevitable, and King Dollar benefits America immeasurably.
Let’s hope for more such common sense from our leaders!
Brady Leonard (@bradyleonard) is a writer, musician, and host of The No Gimmicks Podcast.
