US Cities Propose Data Center Moratoriums Over Resource Concerns

Several US cities are implementing or considering temporary moratoriums on data center development to address concerns over resource consumption and community integration. In Gilroy, California, the Gilroy City Council is weighing an urgency ordinance that would pause new applications for up to 45 days, with potential extensions exceeding a year. Mayor Greg Bozzo stated the measure responds to resident concerns regarding the intensity of such projects, though it would not affect an Amazon data center already under construction.

Similar actions are unfolding in the Midwest and East Coast. The Bemidji Planning Board in Minnesota voted 6-1 to advance a one-year moratorium on facilities exceeding 10,000 square feet to protect the Mississippi River headwaters. In Pocomoke City, Maryland, officials proposed a one-year ban citing high energy and water usage relative to low employment numbers. These moves mirror existing policies in Morgan Hill, California, and Worcester County, Maryland.

Some developers are attempting to bypass these restrictions by redefining their projects. In Chillicothe, Ohio, where a 60-day moratorium is already in effect, Alignment Engine Inc. presented plans to repurpose an industrial site. Chief Technology Officer David Stanfill argued the project is a "data hall" rather than a mega-scale center, claiming it would create 240 permanent jobs without requiring tax abatements.