US States and Cities Impose Data Center Moratoriums

Several United States jurisdictions have implemented restrictions on the rapid expansion of data centers to establish new regulatory frameworks. Kathy Hochul, Governor of New York, issued an executive order imposing a one-year moratorium on data center development. The pause aims to allow the state to create legal guidelines and protections, though labor unions and business groups warn the move could stifle construction growth and mirror the restrictive nature of the state's 2015 hydraulic fracturing ban.

In Virginia, local governments are moving to end by-right development, which previously allowed facilities to bypass city council votes. The city of Chesapeake declared an eight-month moratorium to create new regulations, while Chesterfield County and Loudoun County now require developers to obtain approval from boards of supervisors. These changes are intended to give local governments more leverage in negotiating project terms and generator types.

Simultaneously, the Virginia Department of Environmental Quality is increasing oversight of the industry. Director Michael Rolband coordinated efforts to challenge a report from the Piedmont Environmental Council that warned of health risks associated with AI facilities using natural gas turbines. Internationally, the Green Party in New Zealand is calling for its own one-year ban, citing concerns over power grid strain and electricity prices.