OpenAI Proposes Data Center Rules for U.S. Governments

OpenAI released a policy proposal on November 5, 2026, setting out how it says U.S. federal, state and local governments should regulate data center development, alongside community commitments for facilities the company will own and operate itself.

In the proposal, OpenAI said large power-consuming companies should bear the added costs of grid expansion directly, and that other electricity customers should not absorb losses if a project is halted. It also proposed allowing utilities to curtail data center supply during peak demand periods.

The company said it has agreed with a utility to reduce supply by up to 1,000 megawatts during high-demand hours at its Effingham County, Georgia project.

Disclosure and local incentives

OpenAI proposed that developers disclose water and power use, noise and expected jobs, and limit the scope of nondisclosure agreements required of officials. It said local government tax incentives should be public, carry conditions and performance standards, and be clawed back if promises are not kept.

For its own facilities, OpenAI said it will gather resident input, cover full power and infrastructure costs, prioritize closed-loop cooling to reduce water consumption, and publish usage and noise survey results. It said it will generally not sign NDAs with public officials, with exceptions for security information and trade secrets, and will support hiring and job training with local unions and educational institutions.

The proposed regulations are not yet legally binding, and the company's own commitments apply to facilities it will directly own and operate in the future. The announcement comes as conflicts grow over AI data centers' power and water use and development procedures, according to digitaltoday.co.kr.