Data center developers are struggling to keep up with toughening policy proposals targeting the industry, according to a Bisnow report. Policy changes, including increases in power costs and sustainability mandates, are putting pressure on the industry.
Regulatory risk is an inevitable outcome of the exponential growth and geographic expansion of the sector. While construction for the data centers are booming, they also place a heavy environmental burden on their surroundings, causing states to respond with environmental regulations, proposed limits to energy use and land-use rules.
What started as a response from community organizations has now reached a governmental level. Almost a dozen states are processing legislation and regulations targeting data centers. In some states, such as Mississippi and Kentucky, tax exemptions are offered. More frequently however, the bills aim to restrict the sector’s extreme industry usage or raise costs for data centers, i
