Not only the government, but also anti-bitcoin people in general used the enemy and its dangers to the planet as an excuse to go against Bitcoin. It was very hypocritical because the oil companies and other companies produce more harmful waste to the planet than Bitcoin does. However, when it comes to AI, we have to look at the context.
Elon Musk stopped the use of Bitcoin for payment in Tesla because of concerns raised by environmentalists. Now he is one of the major investors in the AI industry. These companies are more concerned about financial benefits than the environment.
AI is a great innovation for humans. It will make life better and easier, so we can say it's necessary. If the consequences are high energy, then so be it.
This is why I find it hypocritical when people call out oil companies. We can't live on this earth in this modern day without that oil that is extracted from the ground, so even though it is not done in a decent way, it's something that needs to be done.
AI will even get better than it is today; it will become a valuable part of technology in future.
Your argument is logical since AI is slowly becoming part of our everyday lives. But its importance shouldn't be a reason for the havoc data centers are causing to communities. Extreme energy and water consumption and greenhouse gas emissions caused by these centers, if not controlled, would affect different communities. Just as these anti-Bitcoin forces formed well-organized associations, I expect these environmentalists to keep pushing for data centers to have an alternative and safe source of power.