North Star Data Center Policy Toolkit: State and Local Policy Interventions to Stop Rampant AI Data Center Expansion

2025-12-03 · Source: AI Now Institute · Field: Government & Public Sector — Public Policy & Governance, Regulatory & Compliance · Depth: Intermediate, quick

Summary

A new policy toolkit, developed by the AI Now Institute, aims to help US local and state jurisdictions restrict or stop hyperscale data center development. The toolkit addresses the extractive relationship between data centers and communities, citing concerns such as resource depletion, pollution, increased energy costs for ratepayers, diversion of tax dollars, and unfulfilled economic promises. It offers concrete policy recommendations for communities without existing data centers or those seeking to strengthen current legislation against new proposals. The resource is organized into local and state policy recommendations, providing a menu of options that can be adapted to specific conditions, including issue-specific interventions for water, energy, and air quality. The toolkit, currently a working draft, is slated for a final release in early 2026.

Key takeaway

For local and state policymakers evaluating new infrastructure projects, this toolkit provides actionable strategies to address the environmental and economic impacts of hyperscale data centers. You should review the policy recommendations to identify interventions that align with your jurisdiction's specific conditions and legal framework, particularly concerning resource use and community welfare. Consider adopting or strengthening regulations to ensure data center development serves community interests.

Key insights

The toolkit provides policy options to mitigate the negative community impacts of hyperscale data center development.

Principles

• Prioritize community needs over corporate profits.
• Data centers have an extractive community relationship.

Method

The toolkit offers a menu of local and state policy options, including issue-specific recommendations, to restrict data center development based on local conditions and existing laws.

In practice

• Identify strong actions to limit data center impacts.
• Strengthen existing legislation against new proposals.

Topics

• Data Center Regulation
• Environmental Justice
• Local Policy
• Resource Depletion
• Community Advocacy

Best for: CTO, VP of Engineering/Data, Director of AI/ML, Policy Maker, Operations Professional, Legal Professional

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI Now Institute.