AI czar David Sachs: President Trump isn't trying to force data centers on people

AI For Business


President Donald Trump's top AI adviser is trying to clear up confusion about the administration's AI preemption plans.

White House AI and crypto czar David Sachs said in a lengthy post on X on Monday that an upcoming executive order limiting states' ability to regulate AI is an “attempt to resolve jurisdictional issues.”

Sachs, a venture capitalist and co-host of the podcast “All In,” sought to address various concerns about AI preemption, which has proven to be a controversial topic even within the Trump administration.

He referred to these concerns as the four Cs: child safety, community, creators, and censorship.

Regarding the community, Sachs said AI preemption has little to do with building data centers. Data centers have become a political flashpoint in states across the country because of their heavy water and energy demands.

“AI preemption does not apply to local infrastructure. That's a different issue,” Sachs wrote. “In short, preemption does not force the community to host data centers they do not want.”

He also said that AI preemption does not apply to “generally applicable state laws,” so state laws requiring platforms to protect from online predators and child sexual abuse content remain in effect.

The administration appears to be working to rein in the state's power to regulate AI, arguing that forcing companies to comply with competing regulations across 50 states would undermine America's competitiveness in the AI ​​race with China.

The exact content of the upcoming presidential order is unknown, but draft Business Insider reported last month that the Justice Department would be directed to sue states over their “onerous” AI laws.

This comes after several attempts to pass pre-emptive AI legislation through Congress, most notably the Big Beautiful Act. The provision was ultimately removed from the bill before passage due to opposition from several Republican lawmakers.

Sachs wrote to X that the administration “continues to work with Congress to define the federal framework that can be enacted through legislation.” But that didn't stop the opposition from other Republicans.

“It's a great framework,” replied Ohio Republican Rep. Warren Davidson. “This should be a law, not an executive order.”





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