US Cities Impose Moratoriums on AI Data Center Development

The Kalamazoo City Commission is reviewing a proposal to impose a moratorium on permits for new digital data centers to address the high electricity and water demands of artificial intelligence infrastructure. City Manager Malcolm Hankins described the move as an initial step toward developing new city policies, while City Attorney Aaron Leal clarified that such a moratorium serves as a delay rather than a permanent ban.

This trend is appearing across several other U.S. jurisdictions. In Indianapolis, the City-County Council voted 23-1 to advance a moratorium on new data centers until December 31, 2027. Similarly, the Dorchester County Council passed an immediate one-year moratorium in unincorporated areas to research permanent zoning laws and hired R&R Solutions to secure infrastructure funding.

In Roanoke, Mayor Adam Melton and the city council are drafting a moratorium after a proposed $45 million facility raised concerns regarding infrastructure capacity. At the state level, members of the Ohio House of Representatives introduced House Bill 983, which would ban local governments from offering property tax incentives for data centers with peak electric loads over one megawatt and require voter approval for such projects.