Aug 15 (Reuters) - The Data Center Coalition, which

represents data center owners including Google, Amazon ( AMZN )

and Microsoft ( MSFT ), called on U.S. Treasury Secretary Scott

Bessent to uphold existing rules for wind and solar energy

subsidies, saying they have enabled the industry to grow quickly

and stay ahead of competition from China.

WHY IT'S IMPORTANT

Tougher rules on how projects can qualify for federal clean

energy tax credits could slow development of new electricity

generation at a time of surging power demand driven by

artificial intelligence and the digital economy.

KEY QUOTE

"Any regulatory friction that slows down deployment of new

generation today directly impacts our ability to meet AI-era

electricity demands tomorrow," the coalition wrote in its letter

to Bessent. The letter is dated August 4 but was seen by Reuters

on Friday.

CONTEXT

President Donald Trump issued an executive order in July

directing Treasury to tighten clean energy tax credit rules,

including redefining what it means for a project to have started

construction.

The industry has relied on the existing rules for the last

decade, and advisory firm Clean Energy Associates projected this

week that the United States could lose about 60 gigawatts of

planned solar capacity through 2030 if stricter "beginning of

construction" rules are implemented.

BY THE NUMBERS

Between 2017 and 2023, the U.S. data center industry

contributed $3.5 trillion to the nation's gross domestic product

and directly employed over 600,000 workers, according to the

DCC.

WHAT'S NEXT

The Treasury Department is expected to issue updated

guidelines as soon as August 18.