North Star Data Center Policy Toolkit: State and Local Policy Interventions to Stop Rampant AI Data Center Expansion - AI Now Institute
Analysis·3 min read

A Policy Toolkit for Controlling the Expansion of AI Data Centers

By Jordan Vale

The proposed rule requires amid the rapid growth of hyperscale data centers, concerned citizens and policymakers gathered to discuss a new strategy: the North Star Data Center Policy Toolkit. Launched in December 2025, this comprehensive guide aims to empower local communities to combat uncontrolled data center expansion that often undermines their resources and quality of life.

The toolkit outlines specific local and state policy interventions designed to challenge the relentless proliferation of data centers, which consume vast amounts of water and energy while also generating significant emissions and straining local economies. With 50% of new data centers located in areas already experiencing water scarcity, the stakes could not be higher for communities grappling with these expansions. Supported by various grassroots organizers, the toolkit highlights the urgent need for policy measures that prioritize community welfare over corporate profits. (AI Now Hosts Report Launch and Organizer Panel on Using Policy to Stop Data Center Expansion - AI Now Institute)

The Urgency of the Data Center Crisis

As local populations contend with the impacts of climate change, data centers have emerged as major contributors to resource depletion and pollution. These facilities consume up to 100 times more water than traditional industrial operations, intensifying competition for already limited resources. In many areas facing drought, the pressing question is: How can local communities protect themselves against this expansion?

On December 4, 2025, the AI Now Institute held an event to unveil the North Star Data Center Policy Toolkit, highlighting strategies that local organizers can implement. One of the panelists, Angelantonio Enriquez Breault of the No Desert Data Center coalition, shared insights on leveraging community organizing to combat irresponsible data center development. Enriquez notably discussed their success in Tucson, where a local water ordinance was enacted to restrict data centers, a pivotal move aimed at preserving local water resources.

Key Insights from the Launch Event

Connie Di Cicco, the Political Director at Georgia Conservation Voters, emphasized the state-level changes necessary for effective data center regulation. Her focus on transformative policy changes offers a blueprint for other states grappling with similar challenges. The discussion underscored the toolkit's significance as a resource for both policymakers and community advocates.

The North Star Toolkit serves as a customizable framework for jurisdictions striving to prevent the construction of new data centers or regulate existing ones. It encompasses strategies such as moratoriums, zoning reforms, and environmental regulations tailored to local contexts. Among the toolkit's highlights are recommendations to develop more robust permitting processes that assess environmental impacts-including energy consumption and water usage-before approving any new data center projects.

Navigating Local and State Policies

Key stakeholders involved in the toolkit range from local activists to state lawmakers, all united by a common goal: to ensure that community needs take precedence over corporate interests. However, the toolkit stresses that not every policy will be applicable in every locality. Policymakers must consider existing legal frameworks and local sentiments before determining the best course of action.

As the demand for data continues to increase at an unprecedented rate, the urgency for effective regulatory frameworks becomes even more pronounced. The North Star Data Center Policy Toolkit is poised to play a crucial role as communities evaluate their resource management strategies and assert their rights against expansive corporate power. The final version of this toolkit is expected to be rolled out in early 2026, offering further refined strategies to help communities navigate this complex landscape.

Constraints and tradeoffs

  • Significant community resistance against the expansion of data centers.
  • Local regulations may vary significantly, impacting the feasibility of toolkit recommendations.
  • The potential for reduced economic benefits arising from limiting data center operations.

Verdict

The North Star Data Center Policy Toolkit equips communities with essential strategies to influence local and state policies effectively, particularly in promoting responsible tech development that resonates with community interests.

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