Lawmakers weigh AI regulations, data center oversight ahead of 2027 Legislative Session
North Dakota lawmakers are considering new artificial intelligence regulations while examining how large-scale data centers could affect electricity demand, water supplies and local government authority. McKenzie County officials described existing industrial-facility rules, while utility and water representatives discussed infrastructure costs and resource constraints, including Applied Digital’s request for about 50,000 gallons of water per day.
North Dakota’s interim Artificial Intelligence and Data Center Committee completed its review ahead of the 2027 legislative session, focusing primarily on a proposed AI bill that would establish disclosure requirements, prohibit certain harmful uses, authorize civil penalties and create a 36-month regulatory sandbox. The proposal would be primarily enforced by the state attorney general and would create an advisory Artificial Intelligence Council.
Although the bill addresses software rather than physical infrastructure, lawmakers also examined the effects of hyperscale data centers. McKenzie County Commission Chairman Howdy Lawlar discussed water use and contamination issues observed in Cheyenne, Wyoming, and described the county’s industrial-facility ordinance covering noise, setbacks, decommissioning and land reclamation. Water officials said Applied Digital requested roughly 50,000 gallons per day, while utility executives warned that large data center loads could require new pricing structures, revenue guarantees and transmission investments.
The proposed state framework includes a preemption provision but would not broadly eliminate county authority over zoning or industrial-facility regulation. Final action will depend on legislative debate during the 2027 session as state and local officials weigh economic development against infrastructure costs, resource availability and property-owner protections.