The federal government is now taking local towns to court over rules that keep data centers out, which is bad news for communities trying to control what gets built near them.

• The Justice Department has set up an AI litigation team aimed at states and towns with strict data center rules.
• Local governments that pass tough regulations can expect a federal lawsuit rather than a negotiation.
• The team traces back to executive actions signed at the start of Trump's second term.
• The complaint is that taxpayers end up subsidizing private companies they have no ownership or say in.

Outlook: Expect more legal fights between Washington and local governments as the data center buildout spreads.