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⚖️ POLICY & REGULATION

The Senate Advances The Permitting Bill That Makes Data Centers Pay For Their Grid, 73-25: The Senate voted 73-25 on Monday, Nov. 9, to take up S 5653, the Bipartisan American Affordability and Jobs Act, clearing the 60-vote cloture hurdle on the motion to proceed; its sponsors want final passage before this Congress ends in January, the Associated Press reported. The bill shortens federal permitting for transmission, pipelines, mines and power plants and keeps the rule that new data centers of 20 MW or more pay the full cost of the grid service they need. Sen. Ben Ray Luján voted no, citing New Mexico's pueblos; Rep. Hakeem Jeffries, the expected speaker in January, said last week the bill falls short; the Sierra Club and National Wildlife Federation oppose its limits on judicial review and its changes to NEPA and the Endangered Species Act. Track S 5653 on Docket Room. Link

Warren And Banks Push The AI OVERWATCH Act's Chip Export Licensing Into The Defense Bill, With Three Export-Control Plans In Play: Sens. Elizabeth Warren and Jim Banks said Monday, Nov. 9, that "it is time for Congress to take decisive action to pass key bills like the AI Overwatch Act in the NDAA," the must-pass defense authorization lawmakers return to in the coming weeks, Yahoo Finance reported. The bill, S 4456 in the Senate and HR 6875 in the House, where it was reported 42-2 in January, would require Commerce Department licenses for advanced AI chip exports to China and other countries of concern and give Congress 30 days' notice before each license; the MATCH Act on chipmaking equipment and the Chip Security Act on smuggling are the other two vehicles. The push comes as the Nvidia espionage story widens: three House committee chairs have asked Jensen Huang for a closed-door briefing, and Warren takes the Banking Committee gavel in January. Link

Microsoft Presses The White House To Drop The FCC's Planned Ban On Chinese Optical Transceivers: Microsoft has been pressing the Trump administration to halt plans to bar imports of new Chinese optical transceivers, the components that carry data over fiber inside AI data centers, three people familiar with the matter told Reuters on Tuesday, Nov. 10. The FCC is drafting the ban, first reported in August, over concerns the devices could be used to steal data or install malware; Microsoft, with 35 U.S. data centers under construction and 134 planned per Cleanview, was among a handful of firms that met White House science and national security officials in September to argue a ban would stall the buildout. Chinese firms hold about two-thirds of the global transceiver market, per Counterpoint Research. Microsoft declined to comment. Link

Markey Tells Google To Let Schools Switch Off AI In Search Without Losing Search: Sen. Ed Markey wrote to Google on Monday, Nov. 9, demanding that K-12 schools be able to disable the AI features in Google Search without losing the search engine, calling the current setup "an ultimatum to effectively force schools to enable generative AI," and asked the company to say whether it can technically offer schools a search engine without generative AI and, if not, why. Google says schools can turn off Gemini but that AI Overviews and AI Mode are too deeply integrated into Search to remove. Sens. Blumenthal and Hawley asked Sundar Pichai similar questions Oct. 21, with answers due Nov. 2. Link

📅 This week on Docket Room

  • Fri., Nov. 13: Oregon PUC expected to vote on Pacific Power's data center cost settlement under HB 3546.

  • Coming weeks: Senate passage vote on the permitting bill after Monday's 73-25 cloture, S 5653, then the House.

  • NDAA, December: Warren and Banks want the AI OVERWATCH Act's chip export licensing attached, S 4456.

STATES

Hochul Launches A State Program To Test AI Systems Independently Before The RAISE Act Takes Effect: Gov. Kathy Hochul announced Tuesday, Nov. 10, a first-in-nation state effort to independently test AI systems and train AI safety experts, run by the New York Center for AI Responsibility and Research at Binghamton University with more than 80 researchers, Politico reported. The center is funded by a $30 million gift led by Bloomberg co-founder Tom Secunda and $25 million from SUNY and the state, and is set to launch before the RAISE Act, S 8828, takes effect Jan. 1, 2027; Hochul's office hopes its researchers will scrutinize the safety frameworks the law requires of large frontier developers. "The stakes are too high to simply take AI companies at their word," Hochul said. Link

Texas Opens Bill Filing With A Majority Of Senators Behind Repealing The Data Center Sales Tax Exemption: On the first day of filing for the 2027 session, Monday, Nov. 9, Sen. Joan Huffman, the Republican chair of Senate Finance, filed SB 293 to repeal the data center sales and use tax exemption in Tax Code Secs. 151.359 and 151.3595, end existing exemptions on the bill's effective date and deny applications pending with the comptroller, with a majority of senators signed on as joint authors, her office said. The exemption cost about $14.6 million in its first biennium after 2013; the comptroller's estimate for the next biennium is about $3.3 billion. Sen. Judith Zaffirini filed a package that would require a Public Utility Commission permit before a data center is built, bar data centers from raising residents' electricity costs and change counties' authority over them, and lawmakers from both parties filed their own repeal bills, the Texas Tribune reported. Democrats take the House in January; Republicans keep the Senate. Link

Michigan's Governor-Elect Lays Out A Data Center Moratorium Until Hearings, Disclosure And Full Energy Costs Are In Law: Governor-elect Jocelyn Benson is proposing that Michigan allow no new data centers until rules require public hearings before projects advance, disclosure of agreements between developers and officials, proof before construction that a project will not harm water or land, payment for the added electricity a facility uses rather than passing it to other customers, union contracts, and no tax breaks, WDIV reported Tuesday, Nov. 10. Companies that break the rules would be barred from operating in the state. A statewide pause needs legislation; Democrats will lead both chambers in January. Link

Carroll County Extends Its Data Center Pause To February 2028 As Maryland Leaders Weigh A Statewide Moratorium: The Carroll County Board of Commissioners voted Thursday, Nov. 5, to extend its moratorium on new data center development through Feb. 19, 2028, a year beyond the original pause that took effect in February, while it considers code changes and a possible countywide ban, WMAR reported Monday. Baltimore County, Howard County and Baltimore City have temporary pauses and Harford County has moved to ban data centers outright. State and local leaders met Saturday, Nov. 7, to work on new state regulations, with a statewide moratorium among the ideas on the table, WYPR reported. Link

A Missoula AI Company Sues To Overturn The City's Data Center Ban Under Montana's Right To Compute Act: CubCloud AI sued the city of Missoula on Nov. 4 in state court over a zoning change that blocks data center development within city limits, arguing it violates Montana's 2025 Right to Compute Act, SB 212, which bars state and local restrictions on computing unless they are narrowly tailored to a compelling interest, Montana Free Press reported Monday, Nov. 9. The Arizona-based Goldwater Institute is representing the company through its Big Sky Legal Project. It is the first test of the law against a local data center restriction that we have seen. Link

Edmond Extends Its Pause To June 2027, Oklahoma City Votes Today, And Aurora Advances A Ban On Data Center Tax Rebates: Edmond, Okla., extended its data center moratorium 5-0 on Monday, Nov. 9, through June 30, 2027, from Dec. 31; the city says no application has come in. Oklahoma City's council votes Tuesday on an emergency ordinance extending its pause through 2027 with exceptions for some pending rezonings. In Aurora, Colo., the council advanced Mayor Mike Coffman's prohibition on future sales and use tax rebates for data centers Monday, leaving the four existing deals worth up to $83 million, including up to $39 million for the Trident project, in place; Coffman's new moratorium on applications without guaranteed utility service goes on the Nov. 23 agenda, the Sentinel reported. Washington County, Ark.'s Services Committee recommended a 12-month moratorium 9-5; an Indianapolis council committee voted 11-2 against a $113 million, 10-year abatement for DC Blox's $2 billion data center ahead of a Dec. 7 full council vote, WRTV reported; and Minneapolis's council takes up its data center ordinance Thursday. Link

🛡️ SAFETY & SECURITY

Australia Will Create An AI Safety Regulator With Penalty Powers Over Frontier Labs After The OpenAI Medicare Breach: The Albanese government said Tuesday, Nov. 10, it will make safety and security rules mandatory for every frontier AI company operating in Australia and stand up a regulator able to impose "significant penalties," with the rules to sit in a planned Australian AI Standards law due in Parliament next year. Companies would have to report incidents rapidly, allow independent testing, keep security controls through development and deployment, and publish their safety frameworks; the regulator would draw on the Australian AI Safety Institute. The government also accepted all 18 recommendations of the review it ordered after an OpenAI agent got past blocks on a Medicare statistics portal on June 18 and the company disclosed it nearly three months later; one recommendation asks it to consider a criminal offence for companies that fail to prevent harm from their models. Fine levels and the incident-reporting deadline are not yet set. Link

Six Governments And Ten Labs Sign Macron's Paris Call On AI Safety, And Dozens Of Countries Back A Children-First Pledge: France published the Paris Call for AI Safety and Security on Monday, Nov. 9, signed by Anthropic, OpenAI, Microsoft, Mistral AI, Cohere, Hugging Face, Black Forest Labs, Domyn, Sakana AI and Synthesia alongside Bahrain, Canada, Finland, France, Norway and the Netherlands; it commits signatories to a shared framework for assessing frontier-model risks, standardized publication of non-sensitive findings and early-warning information sharing, and stays open to others. At the Paris Peace Forum on Tuesday the UAE joined Australia, Germany, Spain, Egypt, South Africa and the UN in signing the Children First Declaration against exposing children to untested AI models, with targets to 2045, and OpenAI and Anthropic pledged $8.9 million for research on AI and child development, The National reported. Link

💰 POWER & CAPITAL

Louisiana Landowners And Consumer Groups Sue The PSC Over The Fast Track For Meta's $14 Billion Power Buildout: The Louisiana Landowners Coalition, Save My Louisiana and the Louisiana Citizen Advocacy Group sued the Public Service Commission in Baton Rouge district court Monday, Nov. 9, arguing it violated the state constitution's notice requirements when it adopted its "Lightning Speed" directive in December 2025 without meaningful detail on the agenda and never published the change in its rules, KTBS reported. The directive, which followed Gov. Jeff Landry's September 2025 executive order, speeds utility approvals for major investments; Entergy Louisiana is using it for roughly $14 billion of generation to serve Meta's Hyperion campus in Richland Parish, with the commission set to consider the application Dec. 8. "The Lightning Directive allows some utilities to skip" showing they sought low-cost options, said plaintiffs' attorney William Most. Meta and Entergy say ordinary customers will not bear the cost. Link

Opportunity Zone Tax Breaks Are The Next Data Center Fight In Congress, With Hawley And House Democrats Filing To End Them: Fourteen percent of U.S. data centers sit inside opportunity zones, and 17.3 percent of approved, permitted and under-construction projects do, per the National Community Reinvestment Coalition; FracTracker counts 93 proposed and 78 operating data centers in the zones, NOTUS reported Tuesday, Nov. 10. Sen. Josh Hawley's S 5418, the No Tax Breaks for Data Centers Act, would strip data centers from the opportunity zone program, and Rep. Kristen McDonald Rivet's HR 10448 would end their bonus depreciation; both were filed Sept. 16 and sit in the tax-writing committees. Developers argue the zones' purpose is jobs and that micro data centers can deliver them. Link

Effingham Residents Sue OpenAI And Every County Commissioner For Racketeering Over Project Camellia: Three Effingham County, Ga., residents who sued in September over the zoning amendment for OpenAI's proposed $20 billion data center filed a second, 44-page complaint Nov. 6 in Effingham County State Court seeking damages, including triple damages under Georgia's civil RICO law, for fraud, civil conspiracy and racketeering, the Effingham Herald reported Monday, Nov. 9. It names all six commissioners, County Manager Tim Callanan, the Industrial Development Authority and its CEO, OpenAI, its affiliate Octans GA LLC and Savannah Industrial Development LLC, and alleges they coordinated land, incentives and zoning while keeping residents from learning of the project until decisions were made. It does not seek to halt the project; the county says it does not comment on pending litigation. Commissioners take up the site plan again Nov. 17. Link

Anthropic Launches Its IPO Roadshow At $70 To $78 A Share, With Trading Expected Nov. 19: Anthropic launched the roadshow for its initial public offering Tuesday, Nov. 10: 825 million Class A shares, 801.4 million from the company and 23.6 million from existing holders, priced at $70 to $78, with a 30-day option on 123.75 million more, to list on the Nasdaq Global Select Market as ANT; Goldman Sachs and Morgan Stanley are the lead underwriters. CNBC's sources say trading is expected to begin Nov. 19, and CNN put the midpoint valuation at roughly $1.1 trillion. The Nov. 2 amended S-1 told investors the company may "imminently" meet its own Responsible Scaling Policy threshold for AI-accelerated AI progress, and Sen. Warren's questions about those catastrophic-risk disclosures were due back Nov. 3. Link

🏛️ INDUSTRY IMPACT

Anthropic Signs The Teachers Unions' Student AI Privacy Standard, After Microsoft: The American Federation of Teachers and the United Federation of Teachers announced Tuesday, Nov. 10, that Anthropic has signed a legally binding agreement under their AI Safety and Privacy Standard for Schools, effective the same day and applying to Anthropic's existing district contracts for Claude for Teachers, K-12 Dive reported. The standard bars using student and educator data to train models or for advertising or sale, limits use to authorized educational purposes, lets schools set retention and deletion, and requires disclosures to schools and families on what is collected and where the tools fall short. Microsoft's agreement took effect Nov. 1. AFT President Randi Weingarten said she hopes the safeguards will one day be "embedded in law"; UFT's Michael Mulgrew said the unions are acting because the federal government has not. Link

The AAA Opens Its AI Arbitrator To Business Disputes At $2,500 A Claim, Seven Weeks Before California Bars AI-Delegated Awards: The American Arbitration Association said Monday, Nov. 9, that its AI Arbitrator, which drafts an award for a human arbitrator to review and sign, now takes two-party, documents-only business-to-business cases across industries, a year after it launched for construction claims; its rules set a flat $2,500 per claim and per counterclaim, 10 business days per submission and an award five business days after the feedback stage, and both sides must opt in. California's SB 574 (Ch. 858), effective Jan. 1, 2027, bars arbitrators from delegating any part of decision-making to generative AI, and whether "AI drafts, human signs" satisfies it is an open question, Mayer Brown lawyers told Tech Times. Link

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