State and county approaches to data centers: patterns in the first generation

The rapid expansion of artificial intelligence and digital infrastructure has outpaced existing policy frameworks governing data center development. This mismatch between surging demand for digital infrastructure and local planning guidelines is widely acknowledged, although understudied. This study examines intergovernmental policy frameworks that either enable or restrict data center development. Using an exploratory design, we analyze both state economic incentive programs and local land use regulations. Results suggest a broad spectrum of governance approaches, ranging from “incentivizing” states that leverage legislative preemption to limit local zoning control, to “disincentivizing” states that enact moratoria and environmental mandates to safeguard local resources. These state-level interventions frequently override local autonomy, leaving local communities to manage grid, water, and social equity impacts. The friction surrounding data center development mirrors historical land-use debates in energy and housing infrastructure, proving that measures like buffering and screening are no longer sufficient. Addressing this governance gap demands proactive, resource-centered planning. We provide recommendations to streamline zoning regulations from multi-level governance perspectives, as well as recommendations on utility performance metrics, water-use disclosures, and transparent Community Benefit Agreements and engagements from the literature.