ICYMI: David Ibsen Explains Why Fear-Based AI Policy Threatens American Innovation in National Review Opinion

“At the very moment artificial intelligence is emerging as one of the defining innovations of our time, New York is choosing to halt the infrastructure that makes it possible.”

In case you missed it, Americans for Free Markets Executive Director David Ibsen addressed the dangers of reactive policymaking in response to New York Governor Kathy Hochul’s moratorium on data centers in a National Review opinion piece. Ibsen argues that the moratorium reflects a broader problem in the artificial intelligence (AI) debate: policymakers are allowing speculative fears and misunderstanding to drive decisions that will damage America’s economic future and innovation capacity.

Ibsen emphasizes that data centers are not new technology—they already power banking, streaming, health records and countless other essential services. The rush to restrict them stems from misconception, not reality.

“Too many policymakers want the promise of AI while resisting the data centers and energy systems that have made our modern life and the rise of AI tools possible. This is the technological equivalent of wanting air travel without airports or online commerce without warehouses.

“Data centers are not new. They already support banking, streaming services, health records, logistics, cloud storage, cybersecurity, and countless other parts of modern life. AI did not create the need for data centers; our world already depends on them.”

He points to New York’s own cautionary history with novel technology. In 2014, the state banned hydraulic fracturing, which cost communities real economic opportunity as neighboring Pennsylvania reaped the benefits of investment, jobs and tax revenue.

“New York’s own history of building, investment, and innovation made it a global center of commerce. Previous generations understood that prosperity requires investment and infrastructure. Modern energy systems, digital infrastructure like data centers, and sensible permitting are the foundation on which America’s future prosperity will be built.”

Ibsen stresses that responsible infrastructure development and environmental protection are not mutually exclusive. Community concerns deserve attention and accountability; however, blanket bans based on fear lock in false assumptions, raise costs and ultimately move opportunity and investment elsewhere.

“What policymakers should not do is let 50 states create conflicting rules or bans before the technology and its uses are fully understood. Premature, fragmented regulation built on misunderstanding and fear locks in false assumptions, raises costs, and makes it harder for workers, businesses, public agencies, and consumers to benefit from technology.”

Ibsen’s message is clear: policymakers must respond to technological change with understanding, not fear. The question facing New York and the nation is whether we will build the infrastructure of the next economy or send investment, innovation and opportunity elsewhere.

Read David’s full op-ed HERE.