Monterey Park Becomes First US City to Ban AI Data Centers

The city of Monterey Park, California, became the first in the United States to permanently prohibit large-scale data centers in June 2026 following a resident vote. This action marks a peak in local opposition to artificial intelligence infrastructure, mirroring a New York state legislature decision to pass a one-year moratorium on hyperscale facilities to study environmental and economic impacts. Similar restrictions have been enacted in Wisconsin, Connecticut, Missouri, and Maine, with 14 other states considering moratoriums.

These local and state roadblocks contributed to the delay or blockage of over 75 projects valued at $130 billion in the first quarter of 2026. A Gallup survey indicates that 70 percent of Americans oppose local data center construction due to concerns over noise and rising utility bills.

On the federal level, Donald Trump signed an executive order in July 2025 to reduce regulatory burdens on data center infrastructure to ensure the U.S. maintains its lead over China. Senator Tom Cotton has supported this push by calling for a federal investigation into whether foreign actors are influencing U.S. public opinion to stall development. Conversely, Representative Alexandria Ocasio-Cortez and Senator Bernie Sanders introduced the Intelligence (AI) Data Center Moratorium Act in March 2026, arguing that the expansion of these centers causes existential harm to society.