Cities across America are racing to use artificial intelligence agents to solve their biggest planning problems, with two California communities leading the charge this week.

Lancaster, California made history by becoming one of the first cities in the United States to use agentic AI for building permits. This special type of AI can make decisions on its own without humans having to guide every step. The city picked a company called Labrynth to create smart computer programs that will automatically check building applications, find missing parts, and help people fix problems quickly.

Lancaster's mayor, R. Rex Parris, said the city wants to "transform regulatory complexity into an engine for economic growth." The AI system will start with simple tasks like checking if applications have all the right information. Then it will grow to handle more complex decisions about zoning and licensing.

San Jose, another California city in Silicon Valley, also announced new AI tools for building permits. The city has a big headache - nine out of every ten applications for small houses called ADUs (accessory dwelling units) get rejected because people forget to include important information. This creates weeks of delays that slow down housing construction during California's housing crisis.

San Jose's AI helper will work like a smart assistant that checks applications before people submit them. The city is testing software from a company called CivCheck, but they might work with other companies too. San Jose has been a leader in government AI, with programs to train workers and help businesses use artificial intelligence.

While cities embrace AI helpers, data centers - the massive buildings that power AI systems - are facing pushback from local communities across America. These facilities need enormous amounts of electricity and water to keep their computers cool, which worries residents about higher utility bills and environmental damage.

In Tucson, Arizona, city council members voted against a proposed data center project after residents complained about water usage. St. Charles, Missouri is considering banning all new data centers for one year while they figure out new rules. According to research firm Data Center Watch, $18 billion worth of data center projects have been completely blocked, while $46 billion more have been delayed due to community opposition.

The global construction industry is experiencing an AI-driven boom that's changing how buildings get designed and built. The AI construction market was worth nearly $5 billion in 2025 and experts predict it will grow to over $22 billion by 2032 - that's more than 24 percent growth every year.

Construction companies are using AI for many new tasks beyond just planning. Smart computer programs now inspect building sites, predict when equipment might break, and help managers avoid cost overruns. Generative AI tools can create rapid simulations of building designs and spot problems before construction even starts.

This week, industry leaders gathered at Yotta 2025, a major conference in Las Vegas that brought together over 3,000 people who build digital infrastructure. The event, running from September 8-10 at the MGM Grand, focused on creating sustainable, AI-ready facilities that can handle the massive computing needs of artificial intelligence while protecting the environment.

CoreSite, a major data center company, showcased how they build highly connected facilities that can scale quickly to meet growing data demands. Four of their senior leaders were nominated for prestigious industry awards recognizing their impact on digital infrastructure.

The conference highlighted the challenge facing the industry: building enough infrastructure to support AI growth while addressing community concerns about energy use and environmental impact. Speakers discussed strategies for energy-conscious construction, maximizing performance while reducing environmental footprint, and navigating the complex regulatory landscape for AI-era infrastructure.

Experts say this trend represents more than just an economic boom - it's a fundamental shift in how societies build for the future. By 2030, AI investment may become the foundation for economic resilience, with construction companies serving as the builders of the AI economy's physical framework.