The Big Beautiful Bill contains a provision banning state & local governments from regulating AI.
It’s worse than you think.
It would make it easier for corporations to get zoning variances, so massive AI data centers could be built in close proximity to residential areas. pic.twitter.com/w7pLJLq4nZ
— Thomas Massie (@RepThomasMassie) June 5, 2025
🇺🇸 REP. MASSIE: I TRUST THE MATH FROM THE GUY THAT LANDS ROCKETS BACKWARDS
"Personally, I trust the math from the guy that lands rockets backwards over the politician's math.
I think that patient is on life support, and if the Senate thinks they're gonna rehabilitate it and… https://t.co/tVTGUXk8z6 pic.twitter.com/kuS0fsYcFl
— Mario Nawfal (@MarioNawfal) June 6, 2025
The Big Ugly Bill will INCREASE the deficit to $2.5 trillion! https://t.co/jEMS6coT3V
— Elon Musk (@elonmusk) June 5, 2025
The Big Beautiful Bill is making waves, and not in a good way. A provision tucked inside this massive legislative package would strip state and local governments of their ability to regulate artificial intelligence for the next decade. This isn’t just about tech policy. It’s about power, control, and the future of communities across America.
What’s really at stake?
Local governments have long played a crucial role in zoning decisions, ensuring that industrial developments don’t disrupt residential areas. But this bill would make it easier for corporations to secure zoning variances, allowing massive AI data centers to be built dangerously close to neighborhoods. These facilities require enormous amounts of electricity and water, often straining local infrastructure. Without local oversight, communities could be left powerless to push back against unwanted developments.
This isn’t hypothetical. It’s happening.
In one Congressional district, a proposed AI data center raised concerns among residents. The issue was resolved because local officials had leverage to negotiate terms. Under the Big Beautiful Bill, that leverage disappears. The ability of communities to decide where these centers will be built would be undermined, leaving decisions in the hands of corporations and federal regulators.
Why does this matter?
AI data centers aren’t just another business. They’re massive operations with far-reaching consequences. They consume staggering amounts of energy, often requiring new power plants or grid expansions. They demand millions of gallons of water for cooling systems, which can strain local supplies. And they bring increased traffic, noise, and environmental concerns. Without local regulation, communities lose their ability to protect their interests.
The fight isn’t over.
Some lawmakers are pushing back, arguing that states should retain the right to regulate AI within their borders. Others warn that a decade-long moratorium on AI regulation could open the floodgates for unchecked corporate expansion. The debate is heating up, and the stakes couldn’t be higher.
Sources:
https://www.spotlightpa.org/news/2025/06/data-centers-ai-computing-state-incentives/
https://www.pbs.org/newshour/show/the-growing-environmental-impact-of-ai-data-centers-energy-demands
https://djcoregon.com/news/2025/06/05/states-data-center-incentives-ai-growth/