New Bill Targets Data Centers Built Without Local Approval

Detailed summary

A new bill would block federal funding for data centers that fail to meet state and local approval requirements.

A new bill introduced in Congress would prevent federal funding from being used to build or operate data centers, unless the projects comply with state and local laws and obtain any required approvals.

The Community Control of Data Centers Act was introduced by Republican Tennessee Representative Tim Burchett on November 10. It is the latest proposal in Congress amid growing scrutiny in Washington over the resources required by the expansion of data centers, particularly as AI increases demand for computing power.

Under the proposed legislation, federal funds must not be used for the "construction or operation" of a data center unless the project complies with all applicable state and local laws, including obtaining required state or local approval. The Secretary of Energy and the Secretary of the Treasury would determine whether those conditions had been met, according to the bill text.

The bill doesn’t impose a nationwide approval process for data centers or give local governments a blanket power to block them. However, it would require federally funded data centers to comply with existing state and local rules.

Burchett, who previously served as mayor of Knox County, Tennessee, said the legislation is intended to put decisions about data-center development in the hands of the communities where facilities are being built. His office said the boom in artificial intelligence has made data centers a central part of infrastructure. He added, though, that decisions over their construction should be made locally rather than by federal officials or technology companies.

"As the former Mayor of Knox County, I know how important local control is over projects that could have adverse effects on the municipality where they’re located," Burchett said when announcing the legislation. "This bill allows local governments to retake control over new data center construction, putting the power back in the hands of the folks who are most affected."

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