The regulatory battlefield: federal fast-tracking vs state backlash, sovereign AI mandates, and the export control reversal.
Originally scoped to chip fabs, not DCs. In November 2025, OpenAI requested expanding the 35% Advanced Manufacturing Investment Credit (AMIC) to cover AI data centers, AI server producers, and grid components. Not yet enacted.
Trump signed "Accelerating Federal Permitting of Data Center Infrastructure":
| State | Revenue Impact | Status |
|---|---|---|
| Virginia | $1.6B forgone in FY2025 | Senate wants sunset by Jan 2027; House wants to preserve through 2035 with clean energy strings. Loudoun County eliminated by-right DC development (March 2025) |
| Texas | $1B+ in exemptions (FY2025) | Originally estimated at $130M. Anthropic announced $50B buildout starting Texas/NY |
| Georgia | $2.5B+ expected loss | 664% above state estimates. Legislature passed repeal; governor vetoed it |
American tech giants control 70%+ of Europe's cloud infrastructure. In summer 2025, Microsoft France GM testified he cannot guarantee French data safety from US authorities. Google, Amazon, Salesforce stated they would comply with US court orders for European data.
Two years in: EUR 69 billion catalyzed across R&D and facility investments. EUR 80B+ total mobilized. Chips Act 2.0 proposal planned for Q1 2026.
Data Center Energy Efficiency Package expected Q1 2026, targeting carbon-neutral DCs by 2030. Proposed Cloud and AI Development Act aims to triple EU DC capacity within 5-7 years.
| Country | Investment | Key Details |
|---|---|---|
| Saudi Arabia | $20B+ | HUMAIN under PIF. First domestic AI chips by mid-2026. Partnerships: Microsoft, Google, Aramco |
| UAE | 500K NVIDIA chips/year | Largest AI campus outside US planned. G42 + OpenAI + NVIDIA partnerships |
| South Korea | $75B | 260,000+ GPUs, AI Basic Act (Jan 2026), dedicated presidential AI secretary |
| France | EUR 109B | Infrastructure pipeline through 2030, target 500,000 GPUs, sovereign cloud focus |
| India | ~$1.25B | IndiaAI Mission. AI Summit Feb 2026 |
| Japan | Significant | Rapidus 2nm pilot line. Heavy domestic fab investment |
| Singapore | National AI Strategy 2.0 | #1 globally in AI readiness (score 0.80) |
| UK | 14,000 Blackwell GPUs | Europe's AI leader. Strong in safety research, healthcare AI, fintech |
| EU | EUR 200B (InvestAI) | EUR 20B for AI gigafactories. 15+ AI Factories across member states |
BIS suspended the "Affiliates Rule" for one year (November 2025). Non-US DC operators should evaluate ownership structures before it resumes November 2026.
China continues Huawei Ascend development, but CFR concludes Huawei cannot match NVIDIA at scale. The loosened controls ensure next-gen Chinese AI likely runs on US hardware.
At least 37 states offer DC incentives. At least 6 states introduced legislation to roll back in first 6 weeks of 2026.
The political calculus is shifting as job creation (often 30-50 permanent jobs per facility) appears modest relative to billions in forgone tax revenue.
| Deal | Capacity | Details |
|---|---|---|
| AWS / Talen Energy | 1.92 GW | 17-year PPA from Susquehanna nuclear plant. $20B AWS investment in PA |
| Meta / Constellation | 1.1 GW | 20-year PPA from Clinton plant |
| Microsoft / Constellation | TMI restart | 20-year PPA to reopen Three Mile Island by 2028 |
| Meta / Oklo | 1.2 GW | 16 Aurora SMRs (75 MW each) for Ohio campus (Jan 2026) |
| Google / Kairos Power | 6 SMRs | 24/7 carbon-free energy by 2030 |
| Equinix / Oklo | 500 MW | SMR commitment |
FERC unanimously ordered PJM to develop rules for DC colocation at power plants. Washington and Oregon advancing legislation requiring DCs to pay for grid infrastructure upgrades.
Capacity projected to triple from 1 GW (2025) to 3.3 GW. Dubai, Riyadh, and Istanbul positioned as connectivity hubs linking Europe and Asia.