North Star Data Center Policy Toolkit: State and Local Policy Interventions to Stop Rampant AI Data Center Expansion - AI Now Institute
This policy toolkit is primarily geared toward stopping, slowing, and restricting rampant data center development in the US at the local and state level. Our approach recognizes the extractive relationship between data centers and local communities: Hyperscale data centers deplete scarce natural resources, pollute local communities and increase the use of fossil fuels, raise energy costs for everyday ratepayers, pull tax dollars away from community needs, and fail to deliver on overpromised economic developments. This toolkit is intended to help organizers and policymakers identify the strongest possible actions. Recognizing that the North Star policy may not always be feasible, we also offer scaffolded protections that put people above corporate profits. The toolkit provides concrete policy recommendations, primarily targeted toward jurisdictions in the US that do not yet have a data center in their community, or that are working to strengthen existing legislation or regulation to account for new hyperscaler proposals. The resource is organized into local and state policy recommendations to stop and restrict data center development. How to use the toolkit : The toolkit is intended as a menu of options to be analyzed in relation to local and state conditions. Not every intervention will be feasible in every locality, state, or region due to differences in local and state laws, existing regulation, and political conditions. The issue-specific recommendations (water, energy, air quality, and so on) can be used both to limit the impacts of data centers and to act as mechanisms to restrict data center development when they do not work in the community’s best interest. We provide examples of existing or proposed policies, with notes indicating that they are very strong, strong, or weak. Please note that inclusion in this toolkit does not mean we endorse the example or specific language used. In cases where there is no strong example, we have consulted experts and community advocates to identify the North Star policy action, threshold, or quantitative targets. Read the toolki t here . This toolkit is currently a working draft and will be updated with additional feedback from community groups, organizers, technical experts, and policymakers. We will launch a final version online in early 2026. Please reach out to the AI Now Institute at datacenters@ainowinstitute.org with questions.
Executive Summary
The North Star Data Center Policy Toolkit, developed by the AI Now Institute, is a comprehensive resource designed to equip policymakers and community organizers with strategies to curb the unchecked expansion of data centers in the United States. The toolkit highlights the extractive nature of hyperscale data centers, which deplete natural resources, pollute local environments, increase energy costs, and divert tax revenues from community needs. It offers a range of policy interventions tailored to local and state conditions, aiming to either prevent data center development or mitigate its adverse effects. The toolkit is structured to provide scalable solutions, recognizing that the ideal policy may not always be feasible due to varying legal and political landscapes.
Key Points
- ▸ Data centers deplete natural resources and increase fossil fuel use.
- ▸ They raise energy costs and divert tax dollars from community needs.
- ▸ The toolkit offers scalable policy interventions for local and state jurisdictions.
- ▸ It provides examples of existing or proposed policies, categorized by strength.
- ▸ The toolkit is a working draft, to be finalized with community and expert feedback.
Merits
Comprehensive Approach
The toolkit addresses multiple facets of data center impacts, including water, energy, air quality, and economic development, providing a holistic strategy for policymakers.
Scalability
The toolkit recognizes the variability in local and state conditions, offering a menu of options that can be adapted to different jurisdictions.
Expert and Community Input
The inclusion of expert and community advocate insights ensures that the recommendations are grounded in practical realities and community needs.
Demerits
Feasibility Concerns
The toolkit acknowledges that not all interventions will be feasible in every jurisdiction, which may limit its universal applicability.
Draft Status
As a working draft, the toolkit may evolve significantly before its final version, which could affect the reliability of current recommendations.
Lack of Endorsement
The toolkit does not endorse specific examples or language, which may leave policymakers without clear guidance on best practices.
Expert Commentary
The North Star Data Center Policy Toolkit represents a significant contribution to the growing body of literature on the environmental and economic impacts of data centers. By offering a scalable and adaptable set of policy interventions, the toolkit empowers local and state jurisdictions to take proactive measures against the adverse effects of data center expansion. The inclusion of expert and community insights ensures that the recommendations are both practical and grounded in real-world conditions. However, the toolkit's draft status and the acknowledgment of feasibility concerns highlight the need for ongoing refinement and adaptation. As data centers continue to proliferate, the toolkit's role in shaping policy and community responses will be crucial. It is essential for policymakers to engage with the toolkit critically, leveraging its strengths while addressing its limitations to develop effective and equitable policies.
Recommendations
- ✓ Policymakers should engage with the toolkit's recommendations in the context of their local and state conditions, adapting strategies to maximize feasibility and effectiveness.
- ✓ Community organizers and advocates should provide feedback to the AI Now Institute to ensure that the final version of the toolkit reflects the diverse needs and realities of affected communities.
