As Cities Try to Regulate Data Centers, More States Work to Block Their Efforts

At least nine U.S. states have considered 12 bills in the past two years to prevent local governments from regulating data centers and AI infrastructure, according to the Local Solutions Support Center. These preemption laws, modeled after legislation drafted by the American Legislative Exchange Council (ALEC), aim to eliminate local control over projects like hyperscale data centers, which consume energy equivalent to 2 million U.S. households. States including New Hampshire, Ohio, South Carolina, and Virginia have introduced bills codifying a ‘right to compute,’ allowing tech companies to bypass environmental and community oversight. The push follows a surge in data center construction in the U.S., now outpacing global growth, driven by AI demand. Deregulation under the Trump Administration and weakened EPA protections have accelerated approvals, often in rural or economically disadvantaged areas where land is cheap. Critics argue these communities bear the brunt of pollution, water strain, and fossil fuel dependence linked to data centers. Sen. Bernie Sanders (D-VT) introduced federal legislation for a data center moratorium, while Maine’s legislature approved a ban—later vetoed by Gov. Janet Mills. Local resistance, such as in Monterey Park, California, has also pressured officials to reconsider permits. Legal advocates like Leslie Zellers of the Local Solutions Support Center describe the preemption effort as a coordinated lobbying push to shield AI companies from regulation at any government level. The debate highlights tensions between tech-driven economic growth and environmental justice, as marginalized communities face the externalities of unchecked expansion. With preemption laws nearly impossible to reverse once enacted, opponents warn of irreversible consequences for local autonomy and sustainability efforts.