Big Tech urges Congress to pass SPEED Act for AI infrastructure reform

In a bid to streamline the expansion of artificial intelligence infrastructure across the United States, major technology firms including OpenAI, Meta, and Microsoft are advocating for legislative changes. The companies are urging Congress to pass new legislation aimed at reforming the federal permit process.

The proposed legislation, known as the SPEED Act, is a strategic move to enable the U.S. to maintain its competitive edge against China in the AI sector. On Tuesday, the House of Representatives will undertake a crucial procedural vote on the act.

"For companies like OpenAI that are investing in data centers, networking, and supporting infrastructure across the United States, a more efficient and predictable permitting process is essential," articulated Chan Park, OpenAI's head of U.S. and Canada policy and partnerships, in a letter endorsing the bill.

The SPEED Act seeks to amend the 1969 National Environmental Policy Act (NEPA), which currently requires federal evaluations for environmental impact as a prerequisite for issuing permits. Historically, reform efforts have been stalled by Democrats aligning with environmental groups against business-oriented Republicans.

However, growing recognition of AI's significance is fostering bipartisan support for modifying the permitting process. The urgency is underscored by China's rapid development of AI infrastructure and the strain energy-intensive AI data centers place on the aging U.S. electric grid.

Rep. Dusty Johnson, R-S.D., expressed concern, "We've made it entirely too difficult to build big things in this country, and if we do not reform that, that will be a powerful gift that we are giving to China." He added, "Absent a meaningful reform of NEPA, it's going to be difficult for us to get where we need to go."

The SPEED Act is co-sponsored by House Natural Resources Committee Chair Bruce Westerman, R-Ark., and Rep. Jared Golden, a Maine Democrat, indicating cross-party collaboration. The Data Center Coalition emphasizes the necessity of comprehensive permitting reform to bolster the U.S. economy and AI leadership.

According to Cy McNeill, the coalition's director of federal affairs, "Unfortunately, transmission and generation constraints across the country are restricting economic growth, including the development of the U.S. data center industry."

The proposed act aims to accelerate NEPA reviews and reduce the statute of limitations for permit challenges to 150 days, thereby minimizing project delays due to litigation.

"Anybody that wants to stop something under NEPA has an upper hand," noted Westerman. He highlighted the need for enhanced energy infrastructure and generating capacity to support the growing demands of data centers.

Challenges lie ahead as the SPEED Act encounters opposition from the House Republican Freedom Caucus, particularly due to an amendment by Golden that limits presidential powers in revoking energy project permits. Freedom Caucus Chair Andy Harris, R-Md., has expressed conditional support contingent on the amendment's removal.

President Donald Trump's revocation of offshore wind permits earlier this year has fueled the debate. The Republican leadership, holding a slim House majority, faces challenges passing legislation without Democratic support, offsetting any intra-party dissent.

Democrats are pushing for additional assurances, with some expressing concerns about the environmental implications. Rep. Seth Magaziner, D-R.I., stated that Democratic support hinges on integrating clean energy considerations.

Rep. Jared Huffman of California characterized the bill as favoring fossil fuel interests, highlighting the environmental debate.

The Senate has yet to unveil its proposal for permitting reform, although discussions continue. With 53 Republican senators, any reform bill will require bipartisan support to surpass the 60-vote filibuster threshold.

Sen. Martin Heinrich, a New Mexico Democrat, is in talks with Sen. Mike Lee, R-Utah, about simultaneous efforts in the Senate Energy and Natural Resources Committee.