US Cities Weigh Data Center Pauses Amid Infrastructure Concerns

Local governments and community groups across the United States are increasingly pursuing moratoriums on data center development to evaluate environmental and infrastructure risks. In Maryland, Calvert County commissioners adopted a six-month pause on applications, while officials in Carroll County are weighing a yearlong deferral. Similarly, the Indio City Council in California is considering extending a moratorium through October 2027 to draft regulations on emissions, electrical demand, and water consumption.

In Sioux Falls, South Dakota, a coalition including South Dakota for Data Center Transparency is urging a temporary pause on permits to ensure a proposed 500-megawatt Gemini facility is subject to new protections. However, Mayor Christine Erickson opposes a moratorium, arguing it sends a dangerous message that the city is not open for business and preferring to establish regulatory guard rails through active planning.

While some regions seek to limit growth, Revitalization Unlimited has proposed a $183 million, 20-story vertical data center in downtown Kansas City. Designed by Skidmore, Owings & Merrill, the project aims to reduce urban sprawl and lower latency for inference workloads. To avoid straining the electricity grid—a primary concern in regions like Maryland where PJM Interconnection warns of potential brownouts—the Kansas City tower would utilize on-site Bloom fuel cells for power independence.