Data Centers and Infrastructure: Regulation Moves Forward

In contrast to the stalled AI governance bill, legislation addressing data centers, an essential component of AI infrastructure, advanced during Session.

Legislation addressing data centers advanced during Session:

• Affirmation of local government authority over land use and siting decisions.
• Provisions designed to address allocation of infrastructure and utility costs.
• Consideration of energy usage and broader resource impacts.

Earlier versions of the legislation included additional provisions related to transparency and contractual limitations, including discussion of nondisclosure agreements. These provisions were narrowed during the legislative process, resulting in a final framework focused primarily on land use authority and cost allocation.

The resulting legislative framework reflects a more limited, infrastructure-oriented approach addressing the external impacts of AI development rather than regulating the technology itself.