The Federal Data Center Enhancement Act faces expiration this September without renewal plans, even as AI-driven data center construction accelerates nationwide. Passed in 2023 through the National Defense Authorization Act, the law established cybersecurity and sustainability requirements for federal facilities, including mandatory assessments by certified energy-efficiency specialists.

The Office of Management and Budget currently mandates that agencies evaluate energy and water consumption before building or upgrading data centers. However, the Trump administration's hands-off AI oversight approach has left the policy in limbo, with neither the White House nor lawmakers pushing for extensions or replacements.

Community resistance is growing against new data center projects, citing strain on water supplies and power grids. A Gallup survey found 70% of Americans oppose local AI data centers, with nearly half expressing strong environmental concerns. Activist Erin Brockovich has launched a crowdsourced map documenting community complaints nationwide.

This regulatory gap emerges as the administration promotes AI development for national security while scaling back oversight mechanisms. The Center for AI Standards and Innovation recently paused public model reviews to implement Trump's latest executive order, reflecting the tension between rapid AI deployment and necessary governance frameworks.