Federal and state lawmakers are grappling with the rapid development of data centers powering artificial intelligence technologies and straining resources.
These computer server facilities require a steady energy source as well as water for cooling IT equipment, and nearby utilities are feeling the effects. Wholesale electricity costs have increased up to 267% in areas located near significant data center activity from 2020 to 2025, according to a Bloomberg News analysis.
State legislatures are taking the lead on data center regulations so far, with several states enacting laws to roll back tax breaks or require data centers to pay for ...