US Cities Clash Over Hyperscale Data Center Moratoriums

Municipal governments across the United States are grappling with the rapid expansion of hyperscale data centers, leading to a series of conflicting legislative actions. In Little Rock, Arkansas, the Little Rock Board of Directors deadlocked in a 4-4 vote on August 5, 2026, rejecting a proposal for an 18-month moratorium on projects exceeding 250,000 square feet or 75 megawatts. The measure, sponsored by City Director Kathy Webb, specifically targeted a proposed Google facility at the Port of Little Rock industrial park.

Opponents of the Little Rock pause, including the Little Rock Regional Chamber of Commerce, warned that such a moratorium could trigger lawsuits from Google for property value damages. Supporters of the measure cited the projected daily consumption of 1 million gallons of water and 100,000 megawatts of electricity as primary concerns.

Other municipalities have successfully implemented pauses. The Sanford City Council in Maine extended a moratorium on new data center development for 180 days following resident opposition to a 1,000-acre project along the Mousam River. Meanwhile, the Pacific City Council in Missouri voted 4-0 to enact a one-year stay on data center applications, affecting the Crooked Creek and Diamond Farms projects. Pacific officials plan to use this period to conduct land use studies and gather community input.