State lawmakers are introducing restrictions on data centers at a record pace, a sharp reversal from years of tax breaks and other incentives used to lure the facilities as communities push back over electricity costs, water consumption, noise and the rapid expansion of infrastructure needed to power artificial intelligence.
At least 375 data center-related bills had been introduced across state legislatures through July 15, more than the total introduced during the previous three years combined, according to an analysis by The Washington Post. Roughly three-quarters sought to restrict the facilities in some way, although many failed to pass or remain pending. That is a major change from 2023, when about 57% of bills tracked by the outlet sought to encourage data center development through tax breaks, expedited approvals or other incentives.
