Taxpayers Protection Alliance’s Ross Marchand: ‘Data centers are essential for powering’ the digital economy

Ross Marchand, executive director of the Taxpayers Protection Alliance (TPA) said on the Powering America podcast that data centers are necessary for America's digital infrastructure.

“Data centers are essential for powering” the digital ecosystem, Marchand said during the interview, arguing that internet connectivity, cloud services, and AI applications all depend on continued infrastructure expansion.

Listen to this episode:

• Apple

• Spotify

Marchand said opposition to data center construction often centers on concerns over electricity demand and water use, but argued those concerns frequently lack broader context.

“What opponents of AI, opponents of data centers, what they’ll say, what they’ll lead with is they’ll start with really scary sounding numbers,” Marchand said. “But the key is … you have things like hotels, you have things like golf courses, and they’re using more water on average than data center operations.”

Marchand also discussed electricity demand tied to AI infrastructure, pointing to studies he said challenge claims that data centers are driving higher electricity prices.

“We’re talking less than 5% for data center operations,” Marchand said of national electricity use. He also referenced research from Berkeley Laboratory that he said found “there’s no reason to assume that these data center operations are driving higher electricity prices.”

The conversation also examined differing state approaches to data center policy. Marchand cited Maine as an example of a state moving toward restrictions on new data center construction, while pointing to states such as North Dakota and West Virginia as pursuing policies designed to support expanded infrastructure and energy generation.

“You can have the option to go and make your own grid, create your own electrical infrastructure,” Marchand said, discussing proposals allowing self-powered data center operations.

Marchand argued the United States risks falling behind international competitors if policymakers restrict AI and data center development.

“AI will transform our lives for the better,” Marchand said. “But only if we have the infrastructure to support it.”

The episode also explored how AI applications could accelerate medical research, improve internet services, and increase economic competitiveness.

About the Guest

Ross Marchand is executive director of the Taxpayers Protection Alliance, a nonprofit organization focused on government oversight, taxpayer issues, technology policy, energy policy, and regulatory reform. His work has included analysis and commentary on artificial intelligence infrastructure, electricity generation, telecommunications policy, federal spending, and economic competitiveness. Marchand regularly writes and speaks about the intersection of technology, infrastructure development, energy markets, and public policy.