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By Amanda Greenwood
Associate News Editor
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A new bill introduced in Congress would prevent federal funding from being used to build or operate data centers, unless the projects comply with state and local laws and obtain any required approvals.
The Community Control of Data Centers Act was introduced by Republican Tennessee Representative Tim Burchett on November 10. It is the latest proposal in Congress amid growing scrutiny in Washington over the resources required by the expansion of data centers, particularly as AI increases demand for computing power.
Under the proposed legislation, federal funds must not be used for the "construction or operation" of a data center unless the project complies with all applicable state and local laws, including obtaining required state or local approval. The Secretary of Energy and the Secretary of the Treasury would determine whether those conditions had been met, according to the bill text.
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The bill doesn’t impose a nationwide approval process for data centers or give local governments a blanket power to block them. However, it would require federally funded data centers to comply with existing state and local rules.
Burchett, who previously served as mayor of Knox County, Tennessee, said the legislation is intended to put decisions about data-center development in the hands of the communities where facilities are being built. His office said the boom in artificial intelligence has made data centers a central part of infrastructure. He added, though, that decisions over their construction should be made locally rather than by federal officials or technology companies.
"As the former Mayor of Knox County, I know how important local control is over projects that could have adverse effects on the municipality where they’re located," Burchett said when announcing the legislation. "This bill allows local governments to retake control over new data center construction, putting the power back in the hands of the folks who are most affected."
Newsweek has contacted Burchett's office for further comment and is awaiting a response.
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A September report from the Congressional Research Service said large-scale investment in AI had driven a rapid buildout of "hyperscale" data centers, which consume significant amounts of electricity and water. It said concerns about their effects on those resources and the potential financial impact on ratepayers had fueled opposition to developments and calls for greater regulation.
The Congressional Research Service also noted an important issue underlying Burchett's proposal: "private development on nonfederal land is primarily regulated by state and local governments," while land and water use have traditionally fallen within state authority. In other words, state and local governments already play a major role in regulating private development, including through rules governing land and water use. Burchett's proposal would reinforce that role for federally funded data-center projects by requiring compliance with applicable state and local laws and approvals.
Other Data Center Bills in Congress
Burchett's bill is one of several proposals put forward in the current Congress in response to the rapid growth of data centers across the U.S.
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In October, Representative Eugene Vindman introduced the Make Data Centers Pay Act, which would update the Federal Power Act to prevent other electricity customers from being saddled with the costs associated with the power demands of data centers and other high-density computing facilities. It covers qualifying loads of at least 20 megawatts.
Democratic Representative Henry Cuellar's Ratepayer Bill of Rights Act, introduced in August, would require disclosures from large data centers about issues including their electricity and water consumption, infrastructure costs, the effect on utility bills, and public financial assistance they receive. Its provisions apply to data centers reaching specified thresholds, including peak electricity demand of at least 50 megawatts or water withdrawals of at least 100,000 gallons per day.
Meanwhile, Republican Representative Michael Baumgartner's Power and Water for Families Act of 2026 seeks to facilitate data-center development while protecting existing ratepayers from infrastructure costs attributable to large electricity users and encouraging investment in water reuse. The bill's findings acknowledge AI's potential economic and national-security benefits while warning that large new electricity loads may put upward pressure on power costs and pose risks to grid reliability without appropriate safeguards.
Together, the measures demonstrate the range of approaches now being considered in Congress, from strengthening local control and shielding ratepayers to requiring public disclosure of resource use.
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.
Contact Newsweek editors on this story: Ben Kelly and James Debens
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