US Cities Enact Strict New Data Center Regulations

Municipal governments across the United States are rapidly enacting restrictive zoning ordinances and moratoriums to manage the expansion of data centers. Driven by resident protests over water depletion, noise, and energy consumption, cities in California, Iowa, Georgia, Texas, and Arkansas are seeking more control over these large-scale facilities.

In Coachella, California, the City Council scheduled a special meeting for June 4 to discuss a moratorium on the 450-acre Coachella Valley Technology Campus proposed by Stronghold Power Systems Inc. The council also approved a legal review of the project's utility agreement following community threats to recall local officials. Meanwhile, the Palo City Council in Iowa advanced a zoning ordinance for a 545-acre Google project, though residents continue to demand stricter water studies for the Cedar River.

In the South, the Statesboro City Council approved an ordinance on June 3 that prohibits hyperscale facilities and limits edge data centers to 50 acres, requiring closed-loop cooling systems. Simultaneously, the Little Rock Board of Directors enacted an ordinance categorizing facilities by size and energy use to maintain distance from residential areas. In Fort Worth, Texas, city leaders delayed a tax abatement vote for a $1.1 billion project to prioritize the establishment of high-standard zoning and resource protections.