Port Washington, Wisconsin, has become the first municipality in the United States to pass a referendum restricting artificial intelligence data center development, according to local reports. The measure comes after the town received a billion-dollar investment proposal for data center infrastructure last year.

Meanwhile, Maine is positioning itself to become the first state to implement a comprehensive ban on data center development, though specific details of the proposed legislation were not immediately available.

These restrictive measures emerge as communities grapple with the rapid expansion of data center infrastructure driven by artificial intelligence and cloud computing demands. Data centers require significant electrical power and can strain local utility grids, leading to concerns about energy consumption and environmental impact.

In contrast to the regulatory pushback, Intel announced it has secured a commitment from Google to continue using its Xeon processors in data center operations. The partnership represents a significant win for Intel as it competes with rivals like AMD and specialized AI chips in the lucrative data center market.

The divergent approaches highlight the tension between technological advancement and local community concerns over infrastructure development. While some areas seek to limit data center expansion, major technology companies continue investing billions in these facilities to support growing computational needs.