Overview
- The Office of Management and Budget memorandum M-25-03, which implemented the Federal Data Center Enhancement Act, will sunset on Sept. 30, 2026 with no clear federal replacement planned.
- The guidance governed how federal agencies plan and run data centers but did not create binding energy or siting rules for private data centers or commercial crypto miners.
- States and cities have responded with a flood of laws, moratoria and tougher permitting rules, producing a patchwork regulatory landscape that increases costs and planning risk for operators.
- Community concern over electricity, water use and local impacts is high, as polling shows roughly seven in 10 Americans oppose new AI data centers near their homes, and grid operators warn of higher demand and stress on transmission systems.
- Absent federal rules, big tech buyers and voluntary industry standards will have outsized influence on site practices, and investors should watch state legislation, local permits and utility decisions for the next major shifts.