US Data Center Projects Face Moratoriums Amid Mixed Job Gains
Governors in New York and Texas implemented moratoriums on data centers as research shows modest, delayed employment gains fail to offset environmental and utility concerns.
The Government of Texas and the government of New York have implemented moratoriums on new data center projects following intensifying local opposition. This pushback, which also includes restrictions in Seattle and Oklahoma City, has contributed to the delay or cancellation of nearly $200 billion in projects during the first half of 2026, according to Data Center Watch. Similar opposition in Ohio and Texas previously delayed or cancelled $156 billion in projects in 2025.
These policy shifts follow research into the actual economic impact of these facilities. A study by the MIT Center for Real Estate, co-authored by professors Simon Buechler and Lyndsey Rolheiser, analyzed 1,584 U.S. data centers opened between 2000 and 2023. The findings indicate that while local employment increases, the gains are not immediate and typically take three to five years to materialize. Counties generally see 1,000 to 1,300 additional nonconstruction jobs, primarily in professional, technical, transportation, and warehousing services.
The research found that each additional megawatt of capacity is associated with approximately 7.4 nonconstruction jobs after five years, though this figure drops to 2.7 jobs per megawatt when accounting for capacity expansions. Despite these gains, the Brookings Institution and other critics note that the modest employment growth is often outweighed by negative impacts, including pollution and rising utility prices driven by high power and water demands. Furthermore, the study found little to no positive impact on traditional local businesses such as retail shops and restaurants.
