US Local Governments Implement Moratoriums on Data Center Growth
Local officials in Virginia, Kansas, and Minnesota are restricting data center development to address infrastructure strain and economic over-reliance on the industry.
Local governments across the United States are implementing restrictions on data center development to address infrastructure strain and zoning concerns. On July 24, 2026, the Lyon County Commission in Kansas adopted two six-month moratoriums suspending permits for data centers, battery energy storage systems, and solar farms in unincorporated areas to review county regulations.
In Virginia, the Loudoun County Board of Supervisors approved a motion on July 23, 2026, to begin pausing all data center applications, site plans, and substations until new zoning laws are passed. This move follows resident complaints regarding noise, air quality, and electrical grid strain. The board is scheduled to vote on a formal plan on September 15.
Similar actions are unfolding in Minnesota. The Otsego City Council scheduled a public hearing for July 27 to consider a one-year moratorium on new data center applications. Although Otsego currently has no data centers, the proposal follows a trend of Minnesota cities seeking uniform standards through zoning ordinances. This occurs as the nearby city of Elk River pursues its own moratorium and the City of Eagan faces a lawsuit from a developer over a similar restriction.
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