A data privacy advocate has warned that restrictions on new US data centres could lead American companies to process sensitive information overseas, potentially creating national-security and privacy risks. The argument is that demand for AI computing will continue regardless of domestic limits, so companies may buy capacity in countries with weaker safeguards or interests that conflict with those of the United States.

The warning comes as states and communities consider limits over data centres’ heavy electricity use, water consumption, noise and environmental effects. Brittany Kaiser, chief executive of Alpha Compute, supports regulation but says developments can reduce local pressure through closed-loop cooling and self-generated power; her company is planning an off-grid project in Pennsylvania. Pennsylvania and Texas have introduced requirements for large facilities, while New York Governor Kathy Hochul has imposed a one-year moratorium on new hyperscale data centres.