US Cities and States Implement Data Center Regulations

Local and state governments across the United States are implementing diverse regulatory frameworks to manage the rapid expansion of data centers. In Colorado and North Carolina, the city councils of Rifle and Lumberton recently approved new codes to govern future development. Rifle established a 1,500-foot setback from schools and residential buildings, while Lumberton limited development to the Southeast Crossroads Industrial Park and mandated water-efficient cooling.

While Rifle's council acted unanimously to avoid a temporary moratorium, Lumberton's council approved its rules despite resident concerns over public health and resource consumption. Councilman John Cantey argued that the facilities could generate $4 million to $5 million in city revenue to fund essential services.

Other regions are pursuing more restrictive measures. The Minneapolis City Council is scheduled to vote on November 12 to limit data centers to existing buildings in downtown and North Loop areas, capping facilities at 150,000 square feet. This proposal arrives as a six-month construction moratorium expires on November 21.

At the state level, Maryland officials are debating a statewide moratorium. Governor Wes Moore has signaled support for legislative pauses to ensure new facilities utilize clean energy and protect water resources. Simultaneously, Congressman Jamie Raskin announced plans to investigate the use of non-disclosure agreements between technology companies and public officials.