To avoid an AI data-center bubble, Washington must change how it works with US states – Atlantic Council

The US Senate's recent vote against a moratorium on state-level AI regulation highlights the need for improved coordination between federal and state governments regarding AI infrastructure. Local opposition has already delayed significant data center projects, complicating efforts to maintain US leadership in AI. The rapid expansion of data centers poses risks of oversupply and increased costs for consumers, while also raising public health concerns. A coordinated federal approach, including the establishment of an AI Data Center Monitoring Initiative, is essential to ensure investments align with real demand and benefit local communities.