Clouds on the Horizon: An Integrative Review of Data Centers and Local Governance in the United States

Abstract Rapid growth in artificial intelligence and cloud-based services has accelerated data center development, creating new pressures on electricity systems, water resources, land use, and local governance. Largely ignored by citizens and policymakers in the past, data centers are now highly visible, energy-intensive facilities whose siting and operation raise significant community and policy challenges. Yet existing research remains fragmented across technical and disciplinary silos, limiting its usefulness for decision-makers. Employing an integrative literature review methodology, this paper synthesizes interdisciplinary scholarship to examine how data center facility types, siting criteria, and operational demands translate into localized impacts on energy infrastructure, environmental systems, and public finances. It highlights how rapid industry evolution, limited transparency, and uneven regulatory capacity complicate oversight at the municipal and state levels. Drawing on infrastructure and governance theory, the paper reframes data centers as critical energy infrastructure sitting at the intersection of public and private interests, and proposes a conceptual framework to support anticipatory planning, transparency, and coordinated governance as AI-driven demand continues to grow.