The lights flickered in Sarah’s apartment as another brownout swept through her neighborhood, a grim reminder of the data center sucking up power just miles away. Her electricity bill had doubled, and whispers of new AI regulations buzzed at town hall meetings. Now, a new kind of law promises to shield these power-hungry giants from local control.
“Right-to-compute” laws are quietly gaining traction in state legislatures, with Montana leading the charge since April. As reported by VKTR, other states, including New Hampshire, Ohio, and South Dakota, are weighing similar measures. A parallel bill in Idaho stalled, but the trend is unmistakable.
These laws, at face value, aim to protect individual freedom. However, critics argue they are a smokescreen to benefit Big Tech. Think of it as a gilded cage. What seems protective on the surface may actually confine those it claims to liberate.
“Government actions that restrict the ability to privately own or make use of computational resources for lawful purposes, which infringes on citizens’ fundamental rights to property and free expression, must be limited to those demonstrably necessary and narrowly tailored to fulfill a compelling government interest,” reads the Montana law.
The scope is broad, defining “computational resources” as “any tools, technologies, systems, or infrastructure, whether digital, analog, existing, or some other form” used for computation, data processing, or storage.
Right-to-Compute Laws: Freedom or Corporate Shield?
Imagine Main Street, USA. Small businesses struggle to compete as tech giants move in, promising innovation but leaving a trail of inflated costs and regulatory loopholes. Right-to-compute laws, like right-to-work laws, are framed as champions of liberty, but their impact could primarily favor large corporations. They would limit the power of states and local governments to oversee AI projects.
Montana’s law mirrors model legislation from the American Legislative Exchange Council, making it easy for other states to adopt. A senior fellow at the R Street Institute, Adam Thierer, voiced hope that other states would follow suit to “counter the fear-based narratives” surrounding AI.
The timing is telling. Companies like Meta, Microsoft, Amazon, and OpenAI are investing massively in AI infrastructure across the U.S.
Meta even launched advertising campaigns in state capitols, including Iowa, California, Utah, and Florida, touting data center projects as job creators, the New York Times reported.
However, not everyone is thrilled. Google and Microsoft scrapped data center proposals in Wisconsin and Indiana due to community opposition over environmental worries, grid overloads, and rising electricity costs. It’s like a game of whack-a-mole; push them down in one place, and they pop up somewhere else.
How Do Right-to-Compute Laws Affect Local Communities?
Think about your town. Now, consider a massive data center setting up shop, promising jobs but potentially straining resources and driving up energy prices. These laws could prevent local governments from imposing restrictions or demanding concessions from these tech behemoths.
President Trump signed an executive order in December aimed at curbing state regulations deemed overly burdensome, citing national and economic security.
State Pushback and Future Regulations
Despite federal pressure, states aren’t surrendering completely. Nearly 40 states have either passed or are considering laws to regulate business use of AI, according to the National Conference of State Legislatures, as VKTR reported. This shows a clear desire for oversight despite the push for deregulation.
What Kinds of AI Regulations Are States Considering?
States are exploring a variety of regulations, from requiring transparency in AI decision-making to limiting the use of AI in sensitive areas like facial recognition and loan applications. The focus is on accountability and fairness, seeking to mitigate potential biases and harms.
What are the potential environmental impacts?
The surge in data centers raises red flags about power consumption and environmental impact. These facilities require massive amounts of energy and water, potentially straining local resources and contributing to carbon emissions. Stricter environmental regulations may be needed to ensure sustainable growth.
The battle lines are drawn. As AI becomes further entrenched in our lives, the question remains: Who gets to decide the rules?