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US Data Centers Face Midterm Test as States Hold Power and Permitting Levers

Data centers are a US midterm issue as states weigh power and permitting responses, Bloomberg reports.

AI News Feed · 2026-10-27 03:44

Bloomberg reported on Oct. 26 that the issue is putting data centers to a midterm test. While Washington is unlikely to impose limits on new builds, states may still act through the power-market and permitting levers they control. Those tools could shape where projects proceed and how the industry responds to public opposition.

The report said Derrick Flakoll, BNEF's lead US policy analyst, joined to discuss the issue. Bloomberg's headline also pointed to AI demand risk. The item did not specify which states might act or what measures they could take.

The report identifies a narrow federal path for new restrictions and a broader set of state-level options. It does not provide details on specific proposals, votes or state actions.