US Local Governments Implement Wave of Data Center Moratoriums

A growing number of local governments across the United States are implementing restrictions, temporary moratoriums, and outright bans on data center development to address concerns over water consumption, electrical infrastructure, and noise pollution. In Indiana, nearly one-third of counties have adopted restrictions; the Indiana University Environmental Resilience Institute reports 11 counties with permanent ordinances and 17 with temporary pauses, while Marshall and Cass counties have banned new centers entirely. The Hobart Village Board recently approved a one-year moratorium to assess secondary effects, with a draft ordinance expected by September.

Similar trends are emerging in Maryland, where the Prince George’s County Council approved a two-year moratorium and Harford County became the first in the state to ban data centers entirely. In Frederick County, Executive Jessica Fitzwater issued an order pausing new applications until December 31 after a court ruling blocked a zoning restriction from appearing on the autumn ballot. Meanwhile, the Federal Way City Council in Washington unanimously passed a 12-month emergency moratorium on facilities exceeding 1 megawatt or 4,000 square feet.

In Michigan, the Garfield Township Planning Commission recommended a zoning amendment that would allow the township board to freeze land-use applications for up to 18 months. These local actions align with federal legislative efforts by Senator Bernie Sanders and other lawmakers to establish a federal moratorium on AI-focused data centers. Local officials maintain these pauses are necessary to create meaningful change and ensure that new regulations are legally enforceable before technology outpaces local zoning codes.