Reining in data centers sparks rare bipartisanship in statehouses

State legislators from both the Democratic and Republican parties in red, blue and battleground states are proposing over 300 bills this year to regulate the construction and energy consumption of data centers fueling the AI boom. Some lawmakers are seeking temporary moratoriums on data center construction, accusing them of driving up utility costs for communities. Others are proposing requirements for data centers to report their electricity and water usage, or to provide their own renewable energy sources. Lawmakers in states with large data center presences, like Virginia and Georgia, are also looking to cut tax incentives for new data center development. The issue has broken along partisan lines, with voters expressing wariness about AI technology and its impact on costs and the environment. Politicians see the issue as a way to address kitchen-table economic concerns around affordability, which they view as a shared priority across the political spectrum. Experts say legislating the issue is tricky, as states have to balance the economic benefits of data center construction against the costs and consequences for constituents. The xAi plant in Southaven, Mississippi has installed turbines to run around the clock, highlighting the scale of the energy demands from AI-driven data centers. The issue of data center regulation is expected to be a major factor in this year's gubernatorial elections, with 36 states having races on the ballot.