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In the race to build — or stop the construction of — data centers across the country, it’s important to remember no government is spending more on artificial intelligence than America. In fact, according to the Brookings Institute, the number of AI contracts within the federal government has risen from 472 in 2022 to more than 1,700 in 2026.
Most of the spending — $90 billion — is by the Department of Defense, however other departments — Commerce, Health and Human Services, NASA — are spending tens of millions. So regardless of how one may feel about AI, we are all tied to its use.
Site locations and the economic benefits of data centers can be debated, but there’s no getting around the fact that they are the physical embodiment of what AI does. The more computational power a model needs, the more square footage needs to be built.
What makes me most uneasy isn’t the size of the buildings or the energy usage. It’s not knowing whether we’re looking at disruptive technology that will ultimately help all of society, or a disruption that exists mainly to make the richest people on the planet even more money? I wrestle with that question because our history is peppered with examples of the latter.
The world’s first trillionaire, for example, became a household name in part because the demand for electric cars skyrocketed a short time after electric cars all but left the market. Confused? Yeah, me too. General Motors spent years developing its EV1, then abruptly discontinued the model, citing production costs. Was it really that or the oil industry, through lobbyist and campaign donations, undermining the car’s success to protect its own interest? Or was it us, the public, who did not want to change? Who knows for sure?
One thing I do know is that Larry Burns, the former vice president for research and development for General Motors who killed the automaker’s electric car, said if he could turn back time, they would not have stopped investing in the emerging technology.
I’m reminded of those 32 solar panels President Carter had installed on the White House back in 1979. They did not make it past the next administration. Today, China owns more than 80% of the solar market — from every stage of production. The United States didn’t just sacrifice its chance to corner a future clean energy market back when we were its pioneers; we also gave up all the manufacturing and supply chain jobs that would have gone with that dominance.
We didn’t lose that race. We forfeited it.
Go back further, to 1937 and the Marihuana Tax Act. It wasn’t built on science. It was built on fear, newspaper sensationalism and — some historians argue — the interests of industries that didn’t want hemp fiber competing with their own products. The science separated the THC from the fiber, but the story elected officials told the public didn’t. Had hemp, the building material, and marijuana, the drug, not shared the same fate, perhaps it would be the U.S. and not Europe leading in industrial hemp production. Unfortunately, because of the stigma associated with the plant, industrial hemp production was illegal for 80 years until the 2018 Farm Bill.
Today, while American hemp farmers fought decades of federal confusion just to get back into the field, Belgium’s IsoHemp runs an automated factory producing millions of “hempcrete” blocks a year, and Europe’s industrial hemp construction market is projected to grow nearly sixfold by 2033.
“There are so many historical uses for the fiber, from rope to textiles, that it’s really difficult to comprehend just how harmful prohibition was to the science of the industry,” said Mattie Mead, who founded Hempitecture in 2013. Based in Idaho, Mead’s company produces insulation and structural building material incorporating hemp fibers and a lime-based binder. Using hemp in building construction provides an alternative to fiberglass, helps reduce carbon, and naturally keeps buildings cooler in the summer and warmer in winter, reducing energy costs.
“Things are a lot better now than when we first started, but there’s still a lot of stigma and misinformation out there,” Mead said. “It’s like the public has to unlearn the myths and untruths first before they can see how the technology helps.”
The same can be said about data centers and A.I.
So much about the technology has been draped in doomsday scenarios and Terminator movies. It’s hard sometimes to separate the impossible from the improbable. Even more difficult if you can’t tell if the technology is meant for the good of all or just aiming to be good for someone’s bottom line. Maybe, unlike in the “marihuana” prohibition era, the scary warnings are valid. But now just as then, we need to separate fact from myth before setting policy.
YouTube: @LZGrandersonShow
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Ideas expressed in the piece
- The column contends that fearmongering and misinformation have repeatedly driven U.S. policy on emerging technologies, from marijuana to solar power to electric vehicles, leading the country to forfeit rather than lose leadership in major industries.
- The piece argues that political decisions around cannabis blurred the line between hemp as an industrial fiber and marijuana as a drug, allowing stigma and sensationalist narratives to suppress a promising material and its associated jobs for decades.
- The article maintains that similar patterns played out with clean energy, pointing to the removal of President Carter’s White House solar panels as an early sign that short-term politics and incumbent interests undercut U.S. leadership in solar manufacturing and supply chains, enabling foreign competitors to dominate that market.
- The column suggests that corporate lobbying, campaign donations, and public resistance all likely contributed to the demise of early electric vehicle efforts such as GM’s EV1, and it emphasizes that even decision-makers later expressed regret for abandoning the technology too soon.
- The piece draws a parallel between these historical examples and the current fight over AI and data centers, stressing that federal agencies — particularly the Defense Department — are already deeply invested in AI, so the public is effectively tied to the technology whether or not communities welcome new facilities.
- The article expresses unease about whether AI will become a broadly beneficial disruptive technology or primarily a tool to further enrich the wealthiest, and it urges readers to scrutinize whose interests are shaping both the promotion of AI and the backlash against it.
- The column ultimately argues that, just as with hemp and solar power, policymakers must separate fact from myth and resist scare tactics when regulating AI and data centers, or risk repeating past mistakes of allowing fear and misinformation to set the rules for transformational technologies.
Different views on the topic
- Some policy analysts argue that concern about AI is not simply hysteria but a rational response to genuine risks such as dual-use military applications, cyber threats, and economic vulnerabilities; these perspectives emphasize that governments, including the United States, must treat AI as a core economic security issue and carefully manage its adoption rather than focusing primarily on lost commercial opportunities[4].
- In contrast to the column’s focus on fear-driven forfeiture, other experts highlight the long history of the U.S. government actively driving innovation through research funding and procurement, suggesting that public investment and strategic oversight — not just avoiding fearmongering — are central to maintaining technological leadership[3].
- Research on AI-generated misinformation contends that new systems can rapidly spread false or misleading content, undermining public trust and democratic processes; scholars in this field argue that narratives warning about these harms reflect evidence-based worries and justify robust countermeasures such as inoculation strategies and systematic debunking, rather than being dismissed as mere doomsday storytelling[2].
- Digital policy advocates at pro-innovation think tanks contend that the bigger danger is not that fearmongering will block AI, but that overbroad or poorly designed regulations will slow beneficial innovation; these analyses credit earlier U.S. digital leadership to a “light-touch” regulatory approach and call for similarly flexible rules that protect rights without treating every new application as a looming catastrophe[5].
- Fact-checking organizations reviewing viral claims about AI training on personal data report that public anxiety is often fueled by misunderstandings about how companies access and use information, yet they also identify concrete privacy gaps; this work suggests that parts of the debate reflect legitimate consumer protection concerns, not only sensationalism, and that detailed transparency requirements may be as important as challenging exaggerated rhetoric[1].
- Some economic and security commentators argue that the primary policy failure would be allowing rapid, largely unregulated deployment of AI systems that could destabilize labor markets, concentrate power, or empower adversaries; these voices see stricter guardrails and slower rollout as prudent governance, even if such caution risks ceding some market share, and therefore push back on narratives that frame restraint itself as a repeat of past technological “forfeits”[4].