A 10-year moratorium on state-level AI regulation, included in President Donald Trump’s megabill, has sparked controversy due to concerns that companies will take advantage of the moratorium to construct large AI data centres near residential areas, thereby avoiding local opposition and potential restrictions.
The moratorium is designed to establish a framework for regulating AI models at the federal level and to avoid patchwork state policies, but critics claim it will stifle local control over data centre construction.
Laws passed at the local level currently empower communities to have a say in where data centres are built, to control rising utility costs, preserve local water resources and maintain grid stability.
However, the national standard advocated by supporters of the moratorium would avoid a confusing patchwork of state-level policies.
The moratorium is likely to face strong opposition in the Senate, with Democratic and Republican senators alike criticising the proposed restrictions on state powers.
