The 2026 midterms are expected to dramatically tighten the regulatory environment for data center development, shifting power away from developers and toward local communities. This shift is fueled by rising public opposition, leading to local moratoriums, and potential legislative actions such as repealing tax exemptions and mandating that developers cover full energy costs (ratepayer protection). Consequently, the industry faces increased operational and construction costs, stricter permitting requirements, and mandatory community engagement protocols. These changes suggest a move toward greater regulatory oversight, particularly regarding energy use and the mandatory disclosure of AI activities.
Breaking the deadlock on AI governance
English Summary
Chatham House argues that progress on international AI governance is currently stalled due to geopolitical tensions, institutional weaknesses, and public-private imbalances, suggesting that a significant AI-related crisis may be the only catalyst for rapid, binding global cooperation. The paper draws lessons from past crises like the 2008 financial crisis and the WannaCry attack, highlighting the importance of pre-existing institutions and technical expertise for effective crisis-driven governance. Consequently, policymakers should prioritize investing in foundational AI governance infrastructure now to be prepared for a potential crisis and facilitate a robust response.
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