What States Are Doing About Local Data Center Authority

Land use and zoning are some of the primary functions of local government. While most U.S. localities were formed decades or centuries ago, unincorporated areas grappling with residential and commercial growth continue to spur the creation of new localities to this day. Look no further than our newest city, Starbase, Texas, established May 20, 2025.

However, creating a new local authority does not give the newly minted community free rein over its own affairs. In a tale as old as St. Augustine, Florida (our oldest city), state governments like to keep a close eye on the affairs of their cities. Meanwhile, the federal government has an ever-growing tendency to check the authority of states.

Today, this jurisdictional battle is gaining steam on the campaign trail in the run-up to this year's so-called "data center election." With thousands of actions on data centers this year between all levels of government, the focus is sure to continue long after the campaign signs come down.

State Preemption and the Data Center Debate

State preemption of local government authority is hardly a new phenomenon. State legislatures have long intervened in local policymaking on issues ranging from minimum wage and short-term rentals to firearms regulation and COVID-era public health mandates. But the data center debate presents an interesting variation on this familiar dynamic.

Historically, some stakeholders seeking regulatory consistency have supported statewide standards that prevent local governments from adopting a patchwork of conflicting rules. In the case of data centers, however, statewide action may produce the opposite outcome: preventing development in communities that might otherwise support it.

State Legislative Action on Data Center Authority

Maine and Florida Defend Local Control

The most high-profile example was likely Maine Governor Janet Mills' (D) veto of LD 307, which would have imposed a temporary moratorium on data centers in the state. The Governor's veto message emphasized a commitment to local authority, "[...] The final version of this bill fails to allow for a specific project in the Town of Jay that enjoys strong local support from its host community and region." Florida Republican gubernatorial candidate and US Representative Byron Donalds has taken a similar approach to Governor Mills, opposing a moratorium and speaking about local authority: "We're not going to preempt local governments. And take away that authority, these are their communities, they're the ones that have to make these final decisions."

South Dakota and Virginia Strengthen Local Authority

South Dakota passed legislation this year prohibiting the state from regulating local authority over data centers. And Virginia passed a bill requiring data centers to submit impact studies to localities when submitting permit applications.

West Virginia Limits Local Regulation

West Virginia is the one clear outlier – taking action that limited the ability of localities to regulate these projects. In 2025, Governor Morrisey signed legislation which prohibits localities from regulating or restricting data centers. Local leaders have been pushing back to regain control, but to no avail at this point.

With the 2027 legislative sessions fast approaching, the debate over data center development is likely to remain a prominent issue in state capitols and city halls. What began largely as a local land-use discussion has evolved into a broader debate over quality of life, environmental policy, the balance of governmental authority, and technology as a whole. The outcome could establish precedents extending well beyond data centers, shaping how states and localities approach other emerging industries and large-scale infrastructure investments.

Monitor Local Government Activity

Public policymaking starts at the local level. Advocates and innovators are increasingly turning to city hall to enact public policy, resulting in a patchwork of laws and regulations across the country. But monitoring the actions of thousands of municipalities, counties, townships, and special districts can be a monumental task. MultiState's local service alerts you of activity before it happens, in over 4,750 local jurisdictions (and growing). Read more about our Local Government Monitoring service here, or get in touch.

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