Americans’ sensitive information could increasingly be processed overseas if restrictions on artificial intelligence data centers slow construction in the U.S., a data privacy advocate and industry executive warned.

The warning comes as states and local governments weigh new restrictions on the rapidly expanding data center industry amid concerns over electricity costs, grid reliability and other impacts on surrounding communities.

Brittany Kaiser, CEO of Alpha Compute, said state moratoriums and restrictions on new data centers could push American companies to seek computing capacity in other countries as demand from AI continues to surge.

“One…

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