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ArticleOpen Access http://dx.doi.org/10.26855/ftair.2026.12.001

Literature Review of Existing Environmental Policies Related to AI Data Centers: Current Regulatory Tools, Applicability, and Shortcomings

Andy Zhang

The Lawrenceville School, 2500 Main Street, Lawrenceville, NJ 08648, USA.

*Corresponding author: Andy Zhang

Published: September 01, 2026

Abstract

Artificial intelligence data centers have become a visible environmental governance problem because they concentrate electricity demand, cooling loads, water use, backup power generation, land conversion, and hardware turnover at a pace that older regulatory systems did not anticipate. This literature review examines whether existing environmental policies can already regulate the environmental impacts of AI data centers, even where those policies were not written with AI in mind. The review finds that the answer is yes, but only in a partial and uneven way. Existing law in the United States, the European Union, and selected subna-tional jurisdictions already reaches many parts of the AI data center footprint through electricity regulation, carbon policy, energy efficiency rules, water permitting, air quality permitting, land-use controls, environmental review, waste law, and disclosure mandates. Yet the literature also showed recurring shortcomings. Most policies regulate inputs or side effects rather than AI operators directly. Many frameworks remain fragmented across agencies and scales of government. Reporting is often incomplete, especially for facility-level water use, embodied emissions, and AI-specific compute intensity. Existing review processes also struggle with cumulative impacts on grids, aquifers, and nearby communities. The review therefore concludes that the main policy problem is not a total absence of law. It is a mismatch between legacy environmental governance and the scale, speed, opacity, and local concentration of AI infrastructure growth.

Keyword

AI data centers; environmental policy; electricity regulation; water law; air permit-ting; environmental review; e-waste; disclosure

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Copyright

© 2026 by the author(s).
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives (CC BY-NC-ND) license, which permits non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited and is not modified or adapted.
https://creativecommons.org/licenses/by-nc-nd/4.0/

How to cite this paper

Literature Review of Existing Environmental Policies Related to AI Data Centers: Current Regulatory Tools, Applicability, and Shortcomings

How to cite this paper: Andy Zhang. (2026) Literature Review of Existing Environmental Policies Related to AI Data Centers: Current Regulatory Tools, Applicability, and Shortcomings. Future Trends in AI Research, 3(1), 1-12.

DOI: http://dx.doi.org/10.26855/ftair.2026.12.001