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How States Are Reassessing Data Center Footprints
As states have zeroed in on AI, the conversation has expanded to what it takes to power its use amid widespread deployment. Recently, state action around data center activity has extended beyond tax incentives targeted at data centers, a previous policy trend in this area. States' conversations differ, with some looking to data centers as an economic development bite at the “AI rush” and others are concerned about environmental impacts from current sites and new developments. Proposals and debates across five states this session show how the battle is shaking out.
Maine’s Legislature passed LD 307, which places a temporary halt to data center development. The Governor ultimately vetoed the measure, noting that although she is concerned about potential data center impacts, certain communities have been relying on data centers as an economic recovery strategy.
Negotiations fell apart in Colorado among legislators and stakeholders who tried to create a balanced bill (HB 1030) that would encourage data center development through tax incentives and increased environmental protections. A competing bill (SB 102) focused on enhanced environmental protections for large-load data centers. Both proposals have since stalled.
Alabama passed a new law (SB 270) that extends the Public Service Commission's oversight to large-load data centers.
Yesterday, Florida’s Governor signed a new law (SB 484) focused on protecting ratepayers from increased utility costs resulting from data center activity, preserving local authority over data center development, and creating dedicated permitting processes for large-scale data centers.
Other states, like Hawaii (SR 90), are launching new data center impact studies.
State Policy Action
AL: Alabama’s Governor has been busy over the past few weeks, signing new laws and bringing back legislators for a special session focused on Congressional redistricting. A new law, the Governor recently signed (SB 63), focuses on oversight and allowable uses of AI in health coverage and benefit decisions.
CO: The Colorado AI Legislation debate is quickly evolving as the countdown to the 2026 legislative session draws near.
Last week started with a federal judge delaying the enforcement of Colorado’s comprehensive AI law and ended with legislators introducing a bill that makes wide-sweeping changes to the law, based on recommendations from the Governor’s AI working group. In one week, the bill (SB 189) moved quickly through the Senate and has a few days left to pass the House.
Other AI-related bills are also accelerating through the process. Yesterday, the Colorado House debated and passed changes made by the Senate to a bill (HB 1210) focused on the use of data and algorithms to set wages or prices for goods. Two additional bills are steps away from the finish line: one regulating AI chatbots and minors (HB 1263) and another focused on the use of AI in healthcare (HB 1139).
CT: Last week, Connecticut’s General Assembly passed a multi-pronged, comprehensive AI bill (SB 5) focused on AI chatbots, employment and AI, generative AI, and social media platforms. The bill has multiple safety and disclosure requirements, including required safety protocols and whistleblower protections for employees of frontier developers. The bill also expands the state’s anti-discrimination law to clarify that automated decision-making is covered.
Connecticut was one of the first states to enact a comprehensive data privacy law, which has been amended several times. Earlier this week, the legislature passed “The Delete Act” (SB 4), which focuses on pricing based on consumer surveillance data, adds additional requirements related to biometric, genetic, and geolocation data, and creates a data broker registry.
Another bill (SB 417) that passed this week requires exploring a state-led AI small-business program.
DE: Recently, the Governor signed a bill (HB 191) that clarifies an AI agent cannot become a licensed medical professional in the state.
IA: Recently, the Governor signed a bill (SB 2417) focused on AI chatbot interactions, requiring disclosures and specific considerations for minors, as well as additional mental health measures.
MS: Mississippi state legislators are focused on statewide cybersecurity resiliency and enacted a new law (SB 2654) creating a statewide security operations center within the Department of Information Technology Services. This follows a similar approach taken by other states, whereas another state-led approach is to house the center in partnering educational institutions, as in Massachusetts and Florida.
MD: The Governor signed “The Protection from Predatory Pricing Act,” (HB 895), which focuses on food retailers and third-party service providers setting personalized food prices based on consumer data. Last year, a few states passed similar laws focused on using algorithms to set rental housing prices.
MN: Yesterday, the Governor signed a bill (HF 1606) prohibiting the use of AI technology to create a non-consensual, sexually explicit image or video of a person.
NM: The second phase of New Mexico’s case against Meta kicked off in a Santa Fe, NM courtroom earlier this week. New Mexico argues that Meta’s platforms created a “public nuisance” and seeks to compel the company to change its design features. Recently, Meta has publicly threatened to shut down its suite of apps in the state.
PA: Pennsylvania’s Governor sued Character.AI for practicing medicine without a license, including giving a fake license number when prompted.
Earlier this week, the European Parliament and the Council of the EU came to an agreement on changes to the AI Act. According to the European Commission, the changes delay implementation until 2027, simplify and streamline regulations, and ban “nudification technology.”
The Center for AI Standards and Innovation, under the US Department of Commerce, announced partnerships with non-profits and industry to focus on AI evaluations and security.
Center for Democracy & Technology
Code for America
The David and Lucile Packard Foundation
OpenAI
UNESCO
The appropriate and ethical use of AI tools in higher educational institutions is still being determined across the US.
Some leaders do not want to be left behind, focusing on AI literacy and use.
Recently, the Department of Education finalized guidance for grants related to AI and education. The guidance focuses on AI curriculum and also emphasizes the use of AI in instruction and “improving outcomes.”
Some universities, like Penn State, are actively promoting and pursuing AI adoption by announcing AI literacy, new AI-focused faculty, expansion of AI tools and creating new AI leadership positions, such as a Vice Provost for AI.
Maryland passed legislation focused on AI guidance in K-12 and higher education institutions across the state. One bill (SB 720) that passed directed the Department of Education to provide guidance to schools for AI schools, AI professional development and curriculum. Another bill (SB 597) that passed focuses on a formal partnership between the state and higher education institutions centered around workforce development and innovation.
Other stakeholders are concerned about privacy, intellectual property rights and maintaining a higher education workforce. Some state university communities are pushing back on new AI tool rollouts and the integration of AI capabilities in widely used tools.
Earlier this year, the University of Colorado system announced a multi-year agreement with OpenAI’s ChatGPT Edu available to more than 100,000 students, staff and faculty which resulted in = pushback from faculty for not being consulted prior to the decision.
In Arizona, faculty at Arizona State University have pushed back on new AI tools being rolled out into a widely used learning management system, manipulating and slicing their educational content, without consulting them prior to the decision.
The American Association of University Professors polled its members on AI after identifying reported little to no policy oversight of AI use at most institutions. The survey results and recommendations from this organization center around being included in technology use decisions through technology governance bodies, a focus on faculty intellectual property protections, and job protections.
A bill introduced in California (SB 928) clarifies that community college employees must be human. Another bill (AB 2392) in California would require California Community Colleges and the California State University to come up with a plan with input before rolling out system-wide generative AI tools. Iowa (HB 2153) introduced similar legislation.
Tech Policy & Governance Jobs
Company/Organization: | Title: | Closing Date: |
|---|---|---|
Partners for Public Good | 05/17/2026 | |
Snap | Ongoing | |
Center for Security and Emerging Technology (Georgetown) | Ongoing | |
JPMorgan Chase | Ongoing | |
NYC Campaign Finance Board | 06/13/2026 |
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Disclosure: This is a human-written and driven publication. As a small business owner and mighty team of 1, I use AI tools to optimize my small business operations as a part of my admin tech stack. Regarding this publication, AI is mainly used to help with catchy titles, as a thesaurus when writing and a partner when creating cartoons. (Thanks, Canva, and not an ad!) As a secret doodler, I add my human touch using my digital pad and pen. I also use Grammarly, with AI built in, to help with copy editing/grammar check (again, mighty team of one!) Thanks for reading. 😊
