Goldwater Institute’s Bill Beard: Data centers key to AI growth, grid stability, and modern infrastructure

Bill Beard, municipal affairs liaison at the Goldwater Institute, said data centers are becoming essential infrastructure as artificial intelligence and digital services expand, arguing they play a growing role in both economic productivity and energy system stability.

Speaking on the Powering America Podcast, Beard said rising demand for digital tools, cloud computing, and AI applications is driving the need for more data centers across the country. He noted that modern life increasingly depends on constant access to information, requiring robust backend systems to support everything from business operations to everyday smartphone use.

Listen to this episode:

• Apple

• Spotify

Beard said data centers operate with relatively consistent, around-the-clock energy demand, which can help stabilize power grids by creating a steady baseline load. That consistency, he said, allows utilities to better manage spikes in electricity usage and could align with emerging energy solutions such as small modular nuclear reactors.

He also addressed concerns about resource consumption, particularly water usage, pointing to advances in cooling technology. Beard said newer facilities are increasingly using closed-loop systems that recycle water internally, along with alternative sources such as non-potable or brackish water, reducing overall strain on local supplies.

On the economic side, Beard said data centers represent a continuation of long-term technological shifts that improve efficiency by centralizing resources. He argued that consolidating data processing into dedicated facilities can reduce the fragmented energy use that previously existed when information was stored across millions of individual devices and locations.

The discussion also touched on the broader implications of artificial intelligence. Beard said AI is already accelerating developments in areas such as healthcare and could significantly shorten the timeline for discovering treatments for serious diseases, though he acknowledged ongoing concerns about potential misuse of the technology.

Beard added that debates over data center development often overlook core issues such as property rights and free-market principles, which he said are central to how infrastructure projects are evaluated and implemented.

As demand for digital infrastructure continues to grow, Beard said policymakers and communities will need to balance resource concerns with the economic and technological benefits data centers provide.