Who Pays? Energy, AI, and Data Centers in Montana

"Those server farms can build up their own energy. So putting the risk on the back of grandma is an unacceptable standard." - State Sen. Daniel Zolnikov (R-Billings)

Energy, AI, and data centers. Who pays? We had a great chat with State Senator Daniel Zolnikov. (Full audio below)

Our nation needs AI and data centers for our economy and for national security, but right now we lack the energy generation needed to power them. So what do we do? And how do we rebuild industry here in Montana? The same rhetoric used to shut down a data mine could be used to shut down a copper mine.

State Sen. Zolnikov: "If the utility is going to sell this energy to a server farm...and those server farms only want a five year plan, and that takes 15 years to pay off that asset- they are putting all the risk on Montana consumers. So a great solution is the utility can create a subsidiary that's not putting it on the backs of consumers, where the utility builds out the facility, the power facility, the server farm can buy it, and all the risk is on the utility and the server farm, not on Montanans. That is a smart way to do it. Is a functional way to do it. Or, those server farms can build up their own energy. So putting the risk on the back of grandma is an unacceptable standard. I'm the chair of Energy and Technology, and I've been very loud on this viewpoint."

Speaking of AI (artificial intelligence)...I uploaded the audio of our conversation into a platform called Otter.AI and here is how that AI platform summed up our conversation: 

"State Senator Daniel Zolnikov discussed the complexities of AI regulation, emphasizing the need for flexible standards to avoid stifling innovation. He criticized overly stringent state laws that hinder AI development and compared them to outdated regulations on early car models. Zolnikov highlighted the importance of AI for national security, noting its potential to enhance infrastructure and scientific discovery. He also addressed the energy challenges posed by data centers, advocating for utilities to build energy infrastructure to support these projects and prevent ratepayers from bearing the risk. Zolnikov stressed the urgency of accelerating AI and energy development to maintain U.S. competitiveness."

Here's the full audio. Let me know how you think AI did in summing up the convo.