This report will examine how the U.S. data center policy landscape has evolved as the global economy becomes increasingly digitalized, resulting in unprecedented levels of energy demand. The state and federal governments largely diverge on data center regulation due to differing priorities based on regional political leanings, community perceptions, resource availability, cost concerns, and economic competitiveness. AI has driven demand for computing power to new heights, bringing the data center conversation to the forefront. While they are critical to national security and the economy, they pose major challenges to power grids, local communities, and state climate goals. The subsequent sections will delve into federal policy shifts between the Biden and Trump administrations, state policy priorities and support levels, tensions between state and federal approaches, and recent cases that demonstrate these trends. The key issues at stake in this matter are state-level autonomy versus federal ambition, as well as the fate of the energy transition to clean power.