US Cities and States Restrict Data Center Power Demand

Governments across the United States are implementing restrictive measures to manage the environmental and fiscal impacts of surging data center development. In California, the California Public Utilities Commission postponed a decision until October 8 regarding an electricity agreement for a Google data center in San Jose that would draw 250 megawatts. Former Senate leader Dean Florez has urged the commission to implement a statewide tariff to ensure corporations, rather than residential ratepayers, fund the necessary infrastructure upgrades.

Similar regulatory shifts are appearing nationwide. The Government of Oregon passed legislation requiring heavy energy users to pay directly for grid upgrades, while Virginia Governor Abigail Spanberger issued an executive order limiting on-site natural gas production at data centers to protect public health. These actions follow U.S. Department of Energy projections that data centers could consume up to 12% of total U.S. electricity by 2028.

At the municipal level, several Colorado cities, including Commerce City and Thornton, have passed immediate moratoriums on new applications. In New York, the Village of Ilion Board of Trustees is considering a temporary halt on projects requiring 2 megawatts or more. This proposal is opposed by Turin Management, the owner of the former Remington Arms property, which argues that such restrictions deter investment in contaminated industrial sites.