Communities across the U.S. are enacting moratoriums and outright bans on new data center construction. Lawmakers in at least 14 states have considered measures to pause or restrict these developments. This shift reverses previous policies that used tax incentives to attract data center projects.
Local residents and governments cite immense strain on power grids and water supplies as primary concerns. These facilities also threaten to increase utility bills for local populations.
The growing resistance has already blocked or delayed tens of billions of dollars in planned projects. This opposition creates a major obstacle for technology giants expanding infrastructure for the generative AI boom. The demand for AI requires larger hyperscale data centers that consume significantly more resources.