Technology
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Technology
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Anti-data center measures gain steam at state, local level |
Measures seeking to block or rein in data center construction are gaining momentum at the state and local level, as Americans increasingly sour on the massive buildout of AI infrastructure in their communities.
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The Maine legislature became the first in the nation to pass a bill banning the development of large-scale data centers last week.
Meanwhile, a Wisconsin city approved a referendum earlier this month to give voters greater say over major tax-funded projects in response to the construction of a nearby data center campus.
The backlash against data centers has been rising over the past year, as local communities worry about the impacts of the sprawling energy-hungry infrastructure on their electricity bills and environment.
“This isn’t just a flash in the pan,” Ruth Whittaker, director of technology policy at the center-left think tank Third Way, told The Hill. “This is an issue that policymakers need to be paying attention to and taking seriously.”
The data center buildout, which was spurred by the race to develop AI and the need for vast computing power, initially enjoyed widespread bipartisan support.
Governors from both sides of the aisle touted major data center projects arriving in their states, while the Biden and Trump administrations alike sought to implement policies that would speed up the permitting and construction process.
However, the tide quickly turned against data centers. In 2025, $156 billion worth of data center projects were blocked or delayed by local opposition, moratoriums and litigation, according to Data Center Watch, a project from the AI company 10a Labs tracking pushback to the buildout.
Check out the full report at TheHill.com.
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Welcome to The Hill’s Technology newsletter, we’re Julia Shapero and Miranda Nazzaro — tracking the latest moves from Capitol Hill to Silicon Valley.
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How policy will be impacting the tech sector now and in the future:
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Kalshi suspends 3 political candidates for betting on own races
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Kalshi has suspended three political candidates for betting on their own races, the prediction market platform announced Wednesday. Minnesota congressional candidate and state Sen. Matt Klein (D) and former Texas congressional candidate Ezekiel Enriquez (R) both settled and paid small fines over the trades, while Virginia Senate candidate Mark Moran (I) declined to settle and is facing a $6,000 fine. All three were suspended …
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2026 Grammys on the Hill takes aim at AI, honors Coons and Salazar
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Sen. Chris Coons (D-Del.) and Rep. Maria Elvira Salazar (R-Fla.) were honored on Tuesday for their work in protecting musical artists during the Grammys on the Hill awards ceremony, an annual event that focused on the impact of artificial intelligence (AI) in the music community. Lawmakers like Rep. Michael McCaul (R-Texas) and Rep. Steny Hoyer (D-Md.), as well as Grammy-nominated artists and award winners, songwriters, producers …
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Duffy: AI replacing air traffic controllers ‘not going to happen’
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Transportation Secretary Sean Duffy pushed back on concerns that the department’s modernization push could replace human air traffic controllers with artificial intelligence tools. In an interview with CBS News on Tuesday, Duffy said he sees potential for AI to make the nation’s airspace safer, while insisting human controllers will retain final authority in important decisions. “AI is a tool, but we do not replace humans in …
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House Republicans release pair of bills to preempt state privacy laws
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A group of House Republicans introduced a pair of bills Wednesday aimed at creating a national standard on data privacy and overriding existing state regulations on consumers’ and financial data. The bills include the SECURE Data Act, involving technology companies’ handling of data, and the GUARD Financial Data Act, which deals with data protection within financial institutions. The legislation follows years of efforts on …
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News we’ve flagged from the intersection of tech and other topics:
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- USDA kicks off $300M Palantir deal on IT, national security work (FedScoop)
- Microsoft to integrate Anthropic’s Mythos into security development program (Reuters)
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Billionaire investor sues Trump crypto project
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Billionaire investor Justin Sun is suing the Trump family’s cryptocurrency company, World Liberty Financial, accusing the firm of improperly freezing his tokens amid a dispute.
In a lawsuit filed Tuesday, Sun alleged that World Liberty Financial is “engaging in an illegal scheme to seize property.”
“World Liberty’s fraud has caused Mr. Sun and his companies to incur hundreds of millions of dollars in damages, and they seek to be compensated—and also seek certain narrow equitable relief—through this lawsuit,” the filing states.
The founder of the crypto firm TRON spent $45 million purchasing $WLFI tokens in late 2024 and early 2025, as World Liberty Financial got off the ground.
Then-presidential candidate Trump and his sons launched the company in the fall of 2024. It came as Trump reversed course from his previous skepticism about crypto and embraced the industry during his campaign.
The lawsuit argues that Sun’s purchase of the $WLFI tokens was made under an agreement suggesting that World Liberty Financial would not have centralized control over the tokens and that they would eventually become tradable in the future.
Read more about the lawsuit at TheHill.com
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Crypto Corner is a daily feature focused on digital currency and its outlook in Washington.
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Branch out with other reads on The Hill:
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74 percent say college students should be taught how to use AI: Survey
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A Quinnipiac University Poll released Wednesday found a vast majority say college students should be taught how to use AI amid a boom in the technology. Seventy-four percent of Americans say it is very or somewhat important that a college student learn how to use AI, with only 14 percent saying it is not important at all. But Americans also seem to think AI will have a negative impact on education, with 47 percent believing …
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You’re all caught up. See you tomorrow!
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