Local Governments Enact Moratoriums to Block AI Data Centers
Municipalities across North America are implementing development moratoriums to restrict AI data centers over concerns regarding water usage, electricity demands, and local infrastructure impacts.
Local governments across the United States and Canada are increasingly enacting development moratoriums to restrict the growth of AI data centers. On August 12, 2026, the Town Council of Oakville became the first municipality in Ontario, Canada, to unanimously approve a one-year pause on new facilities to study impacts on emissions, noise, and critical utilities. This move follows property acquisitions by HIVE Digital Technologies Ltd., which recently announced plans for a 320-megawatt facility in the Greater Toronto Area.
Similar restrictions are emerging in the U.S. In Ohio, Green Township trustees approved a 12-month moratorium on all new development to block data centers, while Marshalltown, Iowa, passed the first reading of a four-month pause. In Arkansas, Independence County implemented a five-year moratorium—the longest in the state—citing a lack of local benefit and transparency.
Some officials are pushing for broader authority to manage the trend. In Virginia, the Spotsylvania County Board of Supervisors voted to support State Senator Glen Sturtevant's request for Governor Abigail Spanberger to issue a statewide moratorium, arguing that power generation and transmission issues transcend local zoning. These local actions align with broader state-level trends, including a statewide moratorium in New York and a temporary halt on new approvals ordered by the Governor of Texas.
