Copper Thefts at AI Construction Sites Drive Legislative Push
The coalition’s advocacy has centered on tightening laws around scrap metal sales, a measure designed to make it harder for thieves to sell stolen copper to recyclers. Levi has testified before legislative bodies in both Virginia and Texas, two states that host dense clusters of data center construction. His background in state-level advocacy, shaped by previous work as a lobbyist for the technology sector, has informed the coalition’s strategy of pushing for legislative fixes rather than relying solely on industry self-policing. Levi holds a B.A. in political science from the University of Maryland.
The $50 million loss figure from the report covers thefts at construction sites alone — it does not include thefts at operational facilities, which can cause service disruptions and pose safety risks. Building a modern data center requires enormous quantities of copper wiring for power distribution and cooling systems. That copper has long drawn thieves, who strip it from construction sites and sell it to scrap yards for cash. The problem is not new, but the scale has grown sharply as AI projects multiply. Theft at a construction site can delay a project by weeks, inflating costs and straining supply chains for an industry already racing to meet demand. At operating facilities, the consequences can be more severe: stolen copper can knock out power or cooling, potentially disrupting services that millions of people rely on every day.
The coalition has argued that stronger scrap metal laws would create a deterrent effect, forcing recyclers to verify the provenance of materials. The push for legislative action reflects a calculation that the industry cannot solve the problem on its own. Levi has taken the issue to Congress and state legislatures, arguing that current regulations are insufficient to protect critical infrastructure.
Data Centers as Critical Infrastructure at Risk
Data centers have become the physical backbone of the digital economy. For decades, these facilities housed the servers and networking gear that power cloud computing, streaming services, and corporate operations. As demand for artificial intelligence computing surged in the early 2020s, a new wave of construction broke ground across the United States. Much of that building is concentrated in states such as Virginia and Texas, which have become hubs for massive AI computing installations.
The Data Center Coalition represents some of the largest operators in the industry. It was formed to represent the interests of companies that build and run these facilities, focusing on policy issues that affect their growth and security. The group works at the federal and state level to shape legislation on topics ranging from energy use to infrastructure protection. Its current president and CEO, Josh Levi, took the helm in 2020, bringing a background in technology sector lobbying and state-level advocacy.
The coalition’s recent push for stricter scrap metal laws comes at a time when the pace of data center construction is accelerating. For readers, this matters because the data center industry has become a critical piece of national infrastructure. Schools, hospitals, banks, and government agencies all depend on uninterrupted digital services. A slowdown in construction means fewer servers available to handle the growing workload from AI applications. Tougher scrap metal laws, the coalition argues, would create a deterrent effect that protects not just the companies themselves but the broader economy that depends on their steady operation.
What to watch next: whether state legislatures in Virginia and Texas, where Levi has already testified, move to tighten their scrap metal statutes in the current legislative sessions. The coalition’s member companies, which include some of the largest data center operators globally, will be watching closely. The debate over those laws is playing out in state capitals and Congress even as builders try to keep pace with an extraordinary wave of new demand.
