Josh Riley Watch
Why are members of Congress like Josh Riley suddenly focusing on legislation to have the government pay to lay down high speed data lines through rural areas, where few people live, at a time when the availability of online work is decreasing, and when the traditional internet used by most Americans is falling apart under the onslaught of generative AI? This quest to find an answer to this question requires a complex journey with a lot of stops along the way, but for the sake of this podcast, I’m going to try to express it simply, step by step. This story could be summed up in a phrase that will sound terribly dull to most people, but I’ll explain how it’s related to the most important and dramatic political issues of our time. This story is about data centers. The term “data center” sounds dull, but what data centers do should grab your attention. Data centers are the technological infrastructure at the heart of the most controversial issues of our time: Generative AI, fascism, high utility bills, clean air and water, cryptocurrency, the economy, local political control, climate change, workers’ rights, and political corruption. Keep one thing in mind we discuss these issues: Data centers are conduits of power. Data centers consume massive amounts of electrical power, of course, and they do that into order to achieve computational power. This consumption of power isn’t done for its own sake. Data centers are run in order to amass economic power and political power for their owners. The data centers that are currently being built in massive numbers across the United States are not being constructed to support conventional online activity. They don’t help ordinary Americans and businesses with their online activities. They exist to help venture capitalists make money in two ways: Cryptocurrency schemes Generative AI hype All of this might seem like an abstraction to you, but it’s not. It’s a tangible, local issue that is affecting communities in New York’s 19th congressional district. A huge new data center is about to be built on the shore of Cayuga Lake. It’s owned By a company called Terawulf. Rural Broadband Legislation Is Primarily For Data Centers, Not Rural New Yorkers You might ask yourself what all this talk of data centers has to do with Congressman Josh Riley. It’s at this point that we need to bring the focus back to the Reconnecting Rural America Act and the Middle Mile for Rural America Act, the legislation that Riley is sponsoring along with Republicans Randy Feenstra and Zachary Nunn. FastMode, a source of news on digital technology, reports that middle mile legislation, and other bills that seem to be about bringing broadband access to residents of rural areas are, in fact, ultimately designed to provide government funding to support the creation of data centers. Kurt Raaflaub of FastMode [https://www.thefastmode.com/expert-opinion/40204-rural-broadband-expansion-and-the-ai-opportunity] explains: ”Further data center growth in the area and many urban areas is stifled due to the lack of large parcels of land and the lack of local power generation. Bloomberg reported in 2024 that there was a seven-year wait for data center power hook up in Virginia. However, as we improve data center interconnect infrastructure, we will rely less on the need for geographic proximity and consider proximity as it relates to time or latency… The current space and power challenges of urban data center operations present an opportunity for data center expansion in rural areas. The operational advantages of deploying data centers in rural areas are compelling… Ideal data center sites often need to accommodate over a million square feet of space and hundreds of MW of power to meet the needs of hyperscale customers. These specific criteria can be met by many rural areas. This means rural broadband transport networks could act not only as aggregation networks, but also as data center and middle-mile interconnect.” A sponsored article written by Bill Long, an executive at telecommunications company Zayo [https://techcrunch.com/sponsor/zayo-group/middle-mile-infrastructure-is-the-next-frontier-for-digital-and-ai-equity/], states the case more plainly. “We’re seeing additional interest in rural communities from hyperscalers — the Googles and Amazons of the world responsible for ushering in the first wave of AI. Why? Because AI workloads require a massive amount of data, and hyperscalers need somewhere to put it. Hyperscalers are investing millions in data center campuses to house this data, but the space and power requirements for these campuses are pushing them out of the large metropolitan areas and into more rural locations—where space and power are plenty and cheap. But, these data centers also need high-speed internet—and lots of it. So what does this mean? Middle-mile infrastructure will be the next frontier… By investing in the middle-mile infrastructure, we can drive faster deployment of AI. AI has the potential to transform our digital economy at an order of magnitude reminiscent of the Cloud and the early days of the internet itself. But these transformations require infrastructure that is robust and sophisticated enough to support—and that infrastructure isn’t built overnight… By prioritizing investment in the middle-mile backbone, we are providing the critical runway to accelerate the deployment of AI and ensure we have ample infrastructure in place to allow this technology to scale.” At the beginning of this episode, I asked a question: Why are members of Congress like Josh Riley suddenly focusing on laying down high speed data lines through rural areas, where few people live, at a time when the availability of online work is decreasing, and when the traditional internet used by most Americans is falling apart under the onslaught of generative AI? Kurt Raaflaub and Bill Long provide us with the foundation of a good explanation. The ReConnecting Rural America Act and the Middle Mile for Rural America Act are designed to encourage data centers owned by venture capitalists who live in luxurious homes in far away cities under the pretext of providing internet access to country folks. The bills supported by Josh Riley exist for the benefit of cryptocurrency miners and Silicon Valley corporations running generative AI schemes. Why should the government pay for the construction of vast networks of technology to enable extremely fast data transmission throughout rural America? I can anticipate some people arguing that the construction of networks of extremely fast data transmission technology through countryside is like rural electrification in the 1930s [https://govtrackus.s3.amazonaws.com/legislink/pdf/stat/49/STATUTE-49-Pg1363.pdf]. One problem with that analogy is that the population of the United States is much less rural now than it was in the 1930s. In the 1930s, about 50% of Americans live in rural settings. Now, only 20% of Americans do. Another problem with the rural electrification analogy is that the technology that would be installed across rural America isn’t like the electric lines that were installed through rural areas in the 1930s. It’s more like installing industrial grade lines of high transmission energy towers. Rural electrification was about enabling households to have light bulbs and refrigerators. It wasn’t about building factories where there had been farms. The people who will benefit from the legislation supported by Josh Riley will be the wealthy owners and investors in digital technology businesses, not simple country folks who have never been on the internet before. People living in most parts of rural America already have access to the internet, and the vast majority of rural Americans have broadband internet access. According to the most recent report by the Federal Communications Commission, only 22.3% of rural Americans lacked high speed internet access [https://www.fcc.gov/sites/default/files/bdac-low-income-communities-approved-rec-12172020.pdf] at the time of the report. That report is five years old, and only described data from before 2018 - seven years ago. Broadband internet access in rural areas has been improving year after year. According to the FDA, as of two years ago, only 14 percent of rural American households lacked high speed internet access. “The gap between urban and rural or Tribal areas has narrowed each year,” the FCC reported. Specifically, the FCC report showed that, between the years of 2014 and 2018, rural broadband internet access expanded at an average annual rate of 4.35 percent. If that rate held true over the last seven years, every single rural American would have broadband internet access. Of course, that rate probably hasn’t stayed steady, because the very few people in rural America who still don’t have access to high speed internet are for the most part quite far from modern infrastructure in general, and typically don’t even have municipal water access. That’s why the benefit to rural households from investment in expansion of high speed internet lines diminishes every year it continues. Another difference between rural expansion of broadband internet and the rural electrification program of the 1930s is that rural electrification took place through federal loans to cooperative networks. The Middle Mile for Rural America Act and the ReConnecting Rural America Act of 2025 don’t just provide loans. They also give outright grants of federal government money. If the legislation Josh Riley has endorsed passes into law, the American people are going to be paying to set up digital infrastructure to benefit wealthy investors, and we won’t ever be paid back. Cryptobros and generative AI scammers will profit from government assistance, at the same time that schools, health care, and disaster assistance endure harsh budget cuts. The real needs of rural Americans will be ignored while people who already have plenty of money make a killing. For more on the issues related to the Terawulf data center [https://ithacavoice.org/2025/09/environmentalists-sound-alarm-as-plan-to-convert-cayuga-power-plant-to-data-center-advances/] read the recent article by the Ithaca Voice [https://ithacavoice.org/2025/09/environmentalists-sound-alarm-as-plan-to-convert-cayuga-power-plant-to-data-center-advances/].
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