AI data centers are booming, and the US Secretary of Commerce is under scrutiny as Democratic lawmakers send a letter urging an investigation into conflicts of interest.

AI data centers are booming, and the US Secretary of Commerce is under scrutiny as Democratic lawmakers send a letter urging an investigation into conflicts of interest.

The Trump administration strongly supports artificial intelligence (AI) and other high-tech fields, but the boom in data center construction has also drawn criticism from Democrats. Recently, Commerce Secretary Lutnick has come under scrutiny, accused of possibly using favorable policies for personal profit.

On Thursday, Eastern Time, letters released by the U.S. Congress showed that 25 Democratic lawmakers are calling for an investigation into Lutnick for potential conflicts of interest. Led by Senator Elizabeth Warren, Democratic members sent a letter on Wednesday to acting Commerce Department Inspector General Duane Townsend, requesting an investigation into whether Lutnick violated ethical guidelines and used his position to advance AI data center projects for family gain.

The Democratic lawmakers questioned whether Lutnick’s official actions to promote data center development were possibly affected by conflicts of interest, suggesting these actions could benefit his family while imposing higher energy costs on average Americans. Lutnick previously owned and led Cantor Fitzgerald (referred to as "Cantor"), a financial services firm that holds shares in Newmark Group Inc., a real estate brokerage that provides leasing services to data centers.

The day the letter was released, media reports earlier on Thursday indicated that Lutnick’s transfer of Cantor shares was only completed in early October, and he had also received an ethics waiver from the Trump administration.

A Commerce Department spokesperson later responded, stating that Lutnick has fully complied with all provisions in his ethics agreement regarding divestment and recusal of assets, and will continue to do so, including the sale of shares in Cantor and Newmark. Cantor spokesperson Stan Neve refuted Democratic claims, saying the company’s support for technology and infrastructure investors dates back years, long before Lutnick took public office.

Core Demands of Democratic Lawmakers

In the letter led by Representative Madeleine Dean and Senator Elizabeth Warren, 25 Democratic members demanded that Acting Inspector General Townsend investigate the apparent conflict of interest involving Lutnick and his family in AI data center matters.

The lawmakers wrote in the letter:

“Given that billionaire Lutnick’s family has heavily invested in data centers, and the electricity needs of these centers have increased utility bills nationwide, significant public interest exists in ensuring that Secretary Lutnick did not violate federal ethics laws to promote data center development for his family’s profit, while adding to the cost of living for America’s working class.”

The lawmakers noted that Lutnick had owned and led the financial services company Cantor for decades. After signing an ethics agreement requiring him to divest his Cantor shares, he transferred most of them to his adult children months after the agreed deadline. His sons now run Cantor and hold controlling interest, creating an unusual situation: the Secretary’s office now has major crossover with his family’s financial interests.

Deep Connections Between the Family Company and the Data Center Industry

According to the letter, Cantor’s investment in the AI data center industry is mainly realized through its holdings in Newmark Group, a real estate brokerage that leases space to AI data centers. Before his appointment, Lutnick had been chairman of Newmark; his son Kyle Lutnick is now a member of Newmark’s board.

Newmark reports that “unprecedented data center expansion” is helping drive record profits for the company. According to previous media coverage, under Brandon and Kyle Lutnick’s leadership, Cantor is projected to generate over $2.5 billion in revenue—a historical peak that’s more than a 25% increase over last year.

Democratic lawmakers pointed out that recent reports show Lutnick, as head of the Commerce Department, helped promote the development of AI data centers in ways that could benefit his family. In addition to publicly promoting projects—including at least one involving his family’s company—Lutnick also reportedly pressured foreign governments to invest in the U.S. data center industry.

Specific Transaction Cases Involved

The lawmakers listed several concrete cases in the letter. As part of a recent AI chip export agreement with the UAE, Lutnick reportedly pushed for the UAE “to build data centers in the United States” in exchange for eased export controls on certain advanced U.S. chips. The Trump administration ultimately approved this deal, under which Newmark Group, which Lutnick backs, stands to benefit from UAE investment.

Likewise, as part of a separate trade agreement, Lutnick reportedly pushed South Korea to invest hundreds of billions in the U.S. A startup seeking a share of Korea’s investment reportedly paid millions of dollars in fees to Lutnick’s family company to help secure financing and land for new data centers. Lutnick was photographed with the startup’s founder at an event “celebrating their cooperation with a Korean company on a data center project,” raising concerns Lutnick may have used his office to help his sons’ clients secure funding, thus profiting his family.

Data Center Boom and Rising Energy Costs for the Public

The letter stressed that while the rapid growth of data centers has proved lucrative for the Lutnick family, it has also made it harder for American households to afford monthly utility bills. Lawmakers and recent reports emphasize that “energy-hungry data centers are pushing electricity costs in most parts of the United States to record highs, making ordinary families foot the digital economy’s bill.”

As utilities spend billions building new power infrastructure to support data centers, they may charge local households more to offset costs. Some communities have seen utility bills skyrocket by more than 250% over the past five years.

Details of the Investigation Request

Democratic lawmakers have asked the Inspector General to assess Lutnick’s and his family’s ethical conduct, including reviewing the following matters:

  • Whether Lutnick violated the obligation to recuse himself for one year after leaving Cantor from matters involving Cantor or its subsidiaries;
  • Why he completed the asset divestiture on October 6, 2025, instead of the promised deadline of May 19 from his confirmation hearing;
  • The reason, terms, and implementation of his ethics waiver;
  • Whether Lutnick participated in any matters of financial interest to Cantor or Newmark before October 6;
  • Whether he participated in decision-making related to AI data centers;
  • Whether he or his office communicated with Cantor executives regarding AI data centers.

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