Data Centers
Federal AI Data Center Policy Meets Resistance from State Lawmakers
April 14, 2026 | Morgan Scarboro, Kim Miller
The Trump administration has pushed to accelerate federal AI data center policy through executive orders that streamline permitting and environmental review, but these directives don't override state authority on land use, zoning, or utility regulations. Twenty-seven states are advancing state data center legislation that requires developers to cover data center energy costs and report usage, with California, Ohio, and Utah already enacting laws that go beyond the federal government's voluntary Ratepayer Protection Pledge. Maine is poised to become the first state to implement data center construction moratoriums, pausing new projects until November 2027, with several other states and localities considering similar measures despite federal efforts to speed up development. State AI legislation is addressing water consumption and energy infrastructure costs for facilities as small as 10 MW, while federal rules only apply to data centers above 100 MW, creating a gap between federal priorities and local concerns.
