Energy Leaders Say Permitting Reform Key to Powering AI, Data Centers, and Broadband

WASHINGTON, Jan. 15, 2026 – Industry leaders warned at the State of the Energy Industry Forum that delays in energy permitting threaten the United States’ ability to expand data centers, deploy artificial intelligence at scale, and support the broadband infrastructure underpinning the digital economy.

Speakers across multiple panels said surging demand from AI data centers is placing unprecedented pressure on the nation’s power systems, making faster and more predictable permitting essential to sustaining growth.

“Data centers are not the problem, they’re the answer,” said Chris Wright, Energy Secretary, arguing that energy policy must keep pace with rising digital demand rather than restrict it.

Executives from across the energy sector said AI workloads are accelerating electricity demand, particularly from large-scale data centers that support cloud computing, and advanced digital services. Several panelists framed the issue as one of national competitiveness.

“We have to win the AI race,” said Drew Maloney, president and CEO of the Edison Electric Institute, warning that the U.S. “can’t come in second” as other countries streamline infrastructure approvals.

Participants repeatedly emphasized that energy policy has become overly politicized, complicating efforts to build the power generation and transmission infrastructure needed to support data centers and broadband expansion.

“Energy policy has become way too ideological,” said Jason Grumet, president and CEO of the American Clean Power Association, calling for permitting reforms that apply consistently across technologies.

Across panels on energy security, affordability, and supply chains, speakers described permitting delays as the primary constraint on new infrastructure, rather than a lack of capital or demand.

Future permitting processes “cannot be weaponized,” said Mike Sommers, president and CEO of the American Petroleum Institute, arguing that regulatory uncertainty has slowed investment across the energy sector.

Power sector leaders said a diverse energy mix will be needed to meet data center demand while keeping prices stable for consumers.

Karen Harbert, president and CEO of the American Gas Association, said natural gas remains central to reliability and affordability, while Maria Korsnick, president and CEO of the Nuclear Energy Institute, said nuclear energy will be critical to providing carbon-free baseload power for data-intensive infrastructure.

Forum participants concluded that without permitting reform, rising energy costs and infrastructure delays could slow AI deployment, data center construction, and broadband-driven economic growth, even as demand continues to grow.