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⚖️ POLICY & REGULATION

Menin Unveils An NYC AI Package With Kill Switches, Paid Whistleblowers And A Private Right Of Action: Council Speaker Julie Menin's bills, announced Sept. 25, would require AI systems sold in the city to pass outside validation for data quality, bias, privacy and security and carry a human shutoff, give whistleblowers a share of fines recovered from AI companies, let New Yorkers sue when a third party bypasses inadequate safeguards, require city contractors to report AI safety incidents within 24 hours, bar false safety claims and set privacy rules for chatbots, with fines of up to $25,000 per violation. All 51 members hear the package Oct. 5 as a Committee of the Whole; Dario Amodei, Sam Altman, Sundar Pichai, Elon Musk and Mark Zuckerberg are invited, none is expected, and subpoena authority remains available. It lands as the state opens RAISE Act registration in November. "We want to ensure New York stays the AI capital of the world, but with that comes responsibility," Menin said. Link

Trump And Xi Close The Summit With A Two-Month Trade Extension And No AI Agreement: The state visit ended with Treasury Secretary Scott Bessent saying the trade truce due to expire in November was extended by two months, pushing tariffs, Chinese purchases, rare earths and technology restrictions into the next round; the national-security incident notification channel the US floated at Sunday's Bessent–He Lifeng talks was discussed but not signed, and no joint AI framework was published. Trump said both governments oppose new AI rules and repeated that he will not stifle the technology, while Xi's remarks called for keeping AI under human control. Link

FERC Sends ComEd's Bid To Cancel A $20B Data Center Contract To Federal Court And Calls A $1 Deposit "An Embarrassing Legal Fiction": In a Sept. 22 order reported Wednesday, the commission declined to assert primary jurisdiction over Commonwealth Edison's attempt to cancel its transmission security agreement with PowerHouse Hillwood's 1.8-gigawatt Joliet, Ill., campus, leaving the dispute to the U.S. District Court for the Northern District of Illinois. Commissioner David LaCerte wrote that the developer's $1 letter of credit was "an embarrassing legal fiction: insulting to the underlying ratepayers, stakeholders, and the grid itself that bear the real risk." FERC also told RTOs and ISOs to develop clear pro forma cost-recovery agreements for large loads, with responses due in mid-November. Link

STATES

Paxton Opens An Investigation Into Hundreds Of Texas Data Centers That Skipped The State Water Survey: Announced Sept. 24, the attorney general's probe targets data center developments that never answered the Texas Water Development Board's water use survey, which state law requires of entities drawing ground or surface water for industrial, municipal or power-generation use; only 17% of the 341 data centers operating in Texas responded last year, the Houston Chronicle reported. Initial targets sit in 18 counties including Harris, Montgomery, Travis, Dallas, Tarrant, Bexar, Tom Green, Potter, Randall, Lubbock, Midland, Ector and El Paso. "We cannot sacrifice our resources, water, or energy supply," Paxton said. It comes three days after Gov. Abbott halted every TCEQ data center permit, and Senate rival James Talarico called it a reversal of Paxton's earlier stance. Link

Montana's Supreme Court Reverses Itself And Pulls Butte's Data Center Initiative Off The Ballot; Yellowstone County Asks To Amend The Right To Compute Act: On Sept. 24, less than 48 hours after enjoining Butte-Silver Bow to certify Local Initiative 00-02, the court vacated its own order after the county disclosed that ballots without the measure had already been printed, mailed and in some cases returned, and that Montana election law provides no process for supplemental ballots. The justices faulted both sides: organizers' filings implied ballots had not gone out, and the county "could have taken this opportunity to advise the Court"; "the situation the parties and this Court find themselves in was entirely avoidable." The organizers' appeal of the district court's deadline ruling remains pending. The same day, Yellowstone County commissioners approved a letter asking their legislators to amend the 2025 Right to Compute Act in 2027 to confirm counties can zone and permit projects like Quantica Infrastructure's 5,000-acre Broadview campus, saying the law "creates real uncertainty about whether the County may continue to exercise its customary regulatory authority." Link

Palm Beach County Votes Unanimously For A One-Year Moratorium On 50-MW Data Centers: The Sept. 24 final vote bars new applications for data centers with a monthly peak load of 50 megawatts or more until Sept. 24, 2027, while the county hires a consultant and drafts permanent rules. It follows the commission's July rejection of Project Tango, an expansion near the Arden community and Saddle View Elementary that residents said would harm nearby homes. Link

Tuscaloosa County Approves $314.5M In Abatements For Applied Digital's $3.2B Delta Forge 2, Alabama's First Data Center With Community-Benefit Payments: The county Economic Development Authority voted unanimously Sept. 24 for $140.7 million in ad valorem abatements over 20 years and $173.8 million in construction-period sales and use tax relief, paired with $270 million in community benefit payments over 20 years split among Brookwood, Tuscaloosa, Northport, the county, its road improvement commission and DCH Health System in proportion to the taxes abated. The 1.26 million-square-foot campus on a 160-acre footprint within a 1,300-acre Brookwood site will lease 210 megawatts to an unnamed investment-grade hyperscaler, with construction from Oct. 1 through the end of 2028 and more than 100 permanent jobs projected. Link

Pacific Power Agrees To Make New Oregon Data Centers Pay Every Cost They Cause; The PUC Votes Nov. 13: After months of negotiation with Public Utility Commission staff, the Citizens' Utility Board and environmental and community groups, the state's second-largest investor-owned utility agreed last week to assign the cost of new generation and infrastructure built to serve data centers directly to the operators, the Oregon Capital Chronicle reported Sept. 23. CUB called it "the strongest from a for-profit electric utility yet" under HB 3546, the POWER Act that requires a separate data center rate class. Pacific Power and Portland General Electric have raised rates 50% since 2020 as data centers grew to nearly a quarter of retail sales statewide. Link

Massachusetts Gaming Commission Opens A Review Of Sportsbooks' AI After The Times' DraftKings Report: Chairman Jordan Maynard said Sept. 24 that Executive Director Dean Serpa and staff will meet DraftKings about its use of AI and machine learning in promotions and then evaluate every licensed operator's use of AI in customer acquisition, promotions and responsible gaming. The New York Times reported, from interviews with more than 40 former employees and internal records, that DraftKings built a model to find customers most likely to respond to promotions and then lose, using an "elasticity" metric; the company rejects any implication that its marketing is unfair. State rules already bar AI-targeted promotions expected to make a platform more addictive, and a UNLV study the commission released in November 2025 flagged a "governance gap." Link

Leger Fernández Calls For A New Mexico Data Center Pause With Six Conditions: In a Sept. 24 release, the 3rd District congresswoman proposed a moratorium on new data centers until projects cover their own electricity costs, protect water, meet the state's renewable and zero-carbon requirements, create union jobs, win community approval before permitting and forgo public subsidies in favor of community benefits. "We will not give them a blank check," she said, a week after gubernatorial candidate Deb Haaland proposed similar protections and on the day Oracle's force majeure notice on Project Jupiter became public. Link

Scott County, Ky., Extends Its Data Center Moratorium To March To Write Rules Instead Of A Ban: The Fiscal Court voted Sept. 24 to push the pause from its December expiration to March so planning staff can finish regulations grounded in state law; officials said an outright ban risked being struck down and leaving nothing behind. "That's what the moratorium is about, to provide time to gather public feedback, to look at research and then put together a path," Judge-Executive Joe Covington said. Link

🛡️ SAFETY & SECURITY

The Pentagon Seeks $30.3M For An AI Polygraph That Reads Subjects Without Touching Them: MIT Technology Review reported Sept. 25, from a Defense Department budget request, that the Defense Counterintelligence and Security Agency wants $30.3 million over five years for a program called Polygraph+ that pairs AI scoring algorithms with "standoff sensing" such as thermal imaging and facial analysis to read stress, cognitive load and concealment at a distance, for use in employee vetting and insider-threat screening. The Defense Innovation Unit picked Presage Technologies and Altec Research in 2023 to build prototypes. Polygraph researchers called the combination "the worst of both worlds," layering algorithmic uncertainty on a test whose accuracy is already disputed. Link

NewsGuard: Chatbots Cite Partisan "Pink Slime" Sites Nearly Half The Time On Midterm Questions: A NewsGuard audit reported by Politico Sept. 25 prompted seven leading AI tools with questions drawn from recent coverage by 12 partisan sites posing as local news, six left-leaning and six right-leaning, and found the chatbots cited those sites in nearly half of their answers about the candidates and issues involved. NewsGuard now counts 1,179 such sites in the U.S., funded without disclosure by political or ideological interests, against 937 remaining daily newspapers, and says the networks have accelerated output aimed at control of Congress. Link

💰 POWER & CAPITAL

Oracle Sends A Force Majeure Notice On Project Jupiter, The 2.45-GW Stargate Campus In New Mexico: Bloomberg reported Sept. 24 that Oracle invoked the clause with the Blue Owl Capital unit developing the 1,400-acre Doña Ana County site, which would let it defer payments if the campus misses its 2028 target; securing power is Oracle's responsibility under the contract. The Energy Transfer pipeline feeding the site's Bloom Energy fuel cells has slipped nearly six months to Feb. 1, 2027, after repeated permit denials, and the fuel cells' air-quality permit faces a Nov. 23 state deadline. The project carries $18 billion in bank loans. "Project Jupiter remains on our planned schedule," Oracle said; Blue Owl said the notice "does not change the financial commitments to this multi-year project." Link

Anthropic Commits $11.6B Over Seven Years To Akamai's Cloud, With A Path To $20B: Akamai's Sept. 24 8-K discloses the contractual commitment for Anthropic's CPU workloads on its distributed cloud, expandable by up to $9 billion more, plus a warrant for up to about 5% of Akamai's shares that vests as the relationship grows, with roughly 2% vesting on the initial commitment. Akamai expects about $5.5 billion in capital spending tied to the deal, including $1.7 billion added in 2026 to lock in memory and other components. Its shares rose about 15% after hours. Link

DOE Puts $1.9B Into 31 Reconductoring Projects To Free Up 23 GW Of Grid Capacity: The Sept. 24 selections under the Speed to Power through Accelerated Reconductoring initiative total $5.25 billion with $3.35 billion in recipient cost share, drawn from the Grid Resilience and Innovation Partnerships program, and cover 26 states and about 100 million customers. Recipients will rebuild or reconductor more than 1,500 miles of transmission and deploy grid-enhancing technologies across nearly 21,000 miles. "These investments will get more out of the infrastructure we already have," Secretary Chris Wright said; the announcement does not mention data centers, though it is the administration's latest answer to bill-shock politics around them. Link

🏛️ INDUSTRY IMPACT

Berkeley–Politico Poll: 51% Of California Voters Oppose New Data Centers, 61% If Sited In Their Own Community: The UC Berkeley Citrin Center for Public Opinion Research survey, released Sept. 24, interviewed 2,418 registered voters online in English and Spanish from Sept. 8 to 14 and finds about a quarter support new construction. It lands three days after Newsom signed seven data center laws and as local moratoriums spread from Oakland to Palm Springs. Link

MSU Survey: 70% Of Michiganders Oppose A Data Center In Their Community, 83% Want Local Governments To Have A Say: The Summer 2026 State of the State Survey from Michigan State's Institute for Public Policy and Social Research, reported Sept. 24, finds 52% strongly and 18% somewhat opposed against 11% in support; 77% expect data centers to raise home energy costs, three in four call them bad for the environment, and 71% worry one would draw other large projects. It follows the University of Michigan's finding this week that 18% of local officials think data centers justify their costs. Link

MultiState Counts 28 Local Data Center Ballot Measures Across Six States This November: The Sept. 24 tally puts 14 in Ohio, nine of them prohibitions keyed to electrical demand and three outright bans, seven in Illinois, two in Kansas and one in Florida, plus Virginia. Emporia and El Dorado, Kan., would bar "high impact" facilities above 10 megawatts of peak load or 100,000 gallons of daily water draw, thresholds well below most recent proposals, with El Dorado's locked for ten years unless voters repeal it; Edgewater, Fla., would write its council-passed ban into the city charter so a future council cannot undo it. Ohio already has at least 125 local moratoriums in force. Link

📡 PRODUCTS & SIGNALS

Google Sends Four TPUs To Orbit Oct. 1 In Project Suncatcher's First Test: Confirmed Sept. 24, the prototype built with Planet carries four Trillium tensor processing units, roughly one server's worth of compute, on a SpaceX Falcon 9 Transporter-18 rideshare, powered by about a kilowatt of solar. The mission tests whether the chips survive launch vibration, low-Earth-orbit radiation and cooling without air; Google says orbiting panels could yield up to eight times the solar power available on the ground. Link

Gemini's "Call For Me" Phones Businesses On Behalf Of Pixel 11 Subscribers: Google began the U.S. test Sept. 24 for Pixel 11 owners with a Gemini subscription using the beta Phone app; the agent calls from the user's own number, introduces itself, navigates phone menus, waits on hold and asks about stock, reservations or appointment changes while the user watches a live transcript. Google says it is starting small because "real-world conversations are nuanced." Link

Microsoft Foundry Adds Voice-Native Agents In Public Preview: Announced Sept. 24, the new agent type builds voice into Foundry Agent Service rather than layering speech on a text agent, with the same APIs and SDKs, custom voices and avatars, deployment to web apps, Teams, Teams Phone and Twilio-powered phone lines, and voice-specific tracing, transcripts and evaluations. Link

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