This week in tech policy, Washington is grappling with the practical consequences of rapid technological change, from the infrastructure needed to power data centers to the regulatory pressure building around platforms, artificial intelligence, and global trade. As lawmakers, regulators, and governors weigh new approaches to competition, security, energy costs, and content oversight, the decisions taking shape now will influence how technology companies operate at home and abroad. Here’s a look at the key developments and hearings shaping the conversation this week.

In this week’s Nimitz Tech:

• Social Media & National Security: TikTok finalized a U.S. spinoff to American investors, resolving years of uncertainty over foreign ownership and regulatory risk.

• AI & Corporate Finance: Big Tech issued record levels of debt to fund AI data centers, raising questions about financial exposure and long-term returns.

• Platform Regulation & AI Safety: European regulators opened a Digital Services Act investigation into X over the spread of sexualized AI-generated images.

WHO’S HAVING EVENTS THIS WEEK?

Wednesday, January 28th

• Senate Commerce, Science, and Transportation: “Evaluating Progress, Reauthorization of the Federal Public Safety Communications System” at 10:00am. Watch here.

• Senate Commerce, Science, and Transportation: “Examining the Impact of Ticket Sales Practices and Bot Resales on Concert Fans” at 2:30pm. Watch here.

TECH NEWS DRIVING THE WEEK

In Washington

• As electricity prices rise and large data centers drive up demand across regional power grids, the White House and a bipartisan group of governors have outlined a proposal aimed at shielding residential consumers from higher utility bills. The plan, discussed with governors including Pennsylvania’s Josh Shapiro and Maryland’s Wes Moore, would push technology companies operating energy-intensive data centers to pay for their own power generation or agree to curtail operations during periods of peak grid stress. The proposal targets the PJM Interconnection grid, which serves 65 million people across 13 states, and seeks to change market rules so large data center operators secure their own long-term capacity contracts rather than relying on costs passed through to ratepayers. While utilities and some governors expressed support, environmental groups warned the approach could accelerate new gas-fired power plants at the expense of renewable projects, and energy experts cautioned that the nonbinding plan may have unintended consequences in already complex electricity markets.

National

• U.S. airports are rapidly expanding the use of facial recognition and other biometric technologies in 2026 to streamline security screening, immigration checks, and boarding. Airlines and the Transportation Security Administration are increasingly allowing travelers to pass through checkpoints without showing physical identification through programs such as Touchless ID, which is already available at more than two dozen airports and is expected to expand significantly this year. Airports are also deploying more e-gates and testing advanced systems like Orlando International Airport’s “biometric corridor,” which can identify multiple moving travelers at once. In addition, programs such as Enhanced Passenger Processing are extending facial-recognition-based reentry options to U.S. citizens who are not enrolled in Trusted Traveler programs. While officials say the technology improves efficiency and security, privacy advocates continue to raise concerns, particularly as biometric verification is mandatory for foreign visitors and optional for U.S. citizens.

• TikTok announced that it has finalized a deal to spin off its U.S. business into a new, majority American-owned entity, ending years of political and regulatory uncertainty over the app’s Chinese ownership. Under the agreement, TikTok USDS Joint Venture LLC will be owned primarily by U.S. investors including Oracle, Silver Lake, and MGX, with ByteDance retaining a 19.9 percent minority stake, allowing the platform to continue operating in the United States after sell-or-ban legislation threatened its shutdown. The new entity will oversee U.S. user data, the app, and its recommendation algorithm, with Oracle providing secure cloud infrastructure and third-party cybersecurity audits, while a U.S.-majority board and CEO Adam Presser will lead operations. Both the U.S. and Chinese governments signed off on the deal, which reflects broader trade negotiations and marks a win for U.S. security hawks concerned about foreign influence, even as TikTok remains a powerful cultural and political force among its roughly 200 million American users.

• Large technology companies are issuing record amounts of corporate debt to finance the infrastructure required for artificial intelligence, including data centers and the energy systems needed to operate them. In the fourth quarter of 2025 alone, tech firms issued $108.7 billion in bonds, the largest quarterly total on record, with additional borrowing continuing into early 2026, according to Moody’s Analytics. Companies such as Google, Meta, Amazon, Microsoft and Oracle are planning to spend hundreds of billions of dollars on AI-related capital investments, marking a shift from earlier technology expansions that required far less physical infrastructure. While strong cash flows and high profit margins have so far reassured investors, some economists warn that the scale and speed of debt issuance, combined with higher interest rates and uncertainty about how quickly AI investments will generate returns, could increase financial risk. Analysts note that companies are turning to debt to fund growth without diluting shareholders, even as concerns grow about the long-term sustainability of AI-driven spending.

International

• Canada’s decision to lower tariffs on a limited number of Chinese-made vehicles has heightened concerns for U.S. automakers that are already losing market share outside North America. Under an agreement announced by Canadian Prime Minister Mark Carney, Canada will reduce tariffs to 6.1 percent on up to 49,000 Chinese-made cars annually, giving manufacturers such as BYD, SAIC and Geely a foothold in a market closely tied to U.S. auto supply chains. Analysts say the move reflects the fallout from U.S. trade policies, including tariffs on Canadian vehicles and the rollback of electric vehicle tax credits, which have weakened Canada’s auto sector and pushed it toward closer economic ties with China. While the number of Chinese vehicles allowed into Canada will be small, industry leaders warn the deal could undermine the integrated North American auto industry and further disadvantage U.S. carmakers as Chinese manufacturers continue to expand globally, particularly in electric vehicles.

• European Union regulators have opened a formal investigation into Elon Musk’s social media platform X, citing concerns that inadequate safeguards allowed the widespread creation and distribution of sexualized images generated by its AI chatbot, Grok. Authorities said the integration of Grok posed “systemic risks” under the Digital Services Act after sexually explicit deepfakes, including images involving children, appeared on the platform in late December. The inquiry adds to mounting regulatory pressure on X, which was fined last month for separate violations related to advertising transparency, deceptive design and data access for researchers, and is already under investigation for its recommender algorithm and handling of illegal content. EU officials said they could require changes to the platform during the investigation, while X stated that it has expanded guardrails on Grok and maintains a zero-tolerance policy for child sexual exploitation and nonconsensual sexual content. The case underscores growing tensions between European regulators and U.S. officials over online content moderation and platform accountability.

Just for Fun

If you like tea, this is a great one to catch. Reasons to Gather: Japanese Tea Practice Unwrapped looks at how Japanese tea culture turns everyday objects like tea bowls, caddies, calligraphy, and even storage boxes into meaningful works of art.

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