US Local and State Governments Move to Ban Data Centers

Local and state governments across the United States are taking legislative action to halt data center development due to concerns over electricity consumption, water usage, and limited job creation. In California, the Monterey Park City Council unanimously approved a June ballot measure to propose a citywide ban on data centers and directed staff to develop a prohibiting ordinance by mid-April. These actions follow fierce community opposition to HMC StratCap's proposed 1977 Saturn Data Center Project. Mayor Elizabeth Yang criticized the developer for a lack of transparency and failing to engage directly with city officials, while the council extended a moratorium on all data center applications to protect the city from potential litigation.

Similar legislative efforts are appearing at the state level. In Maine, the Energy, Utilities and Technology Committee voted 8-5 to advance bill LD 307, which would freeze permits for new data centers with loads of at least 20 megawatts until October 2027. This pause allows a newly created coordination council to study infrastructure impacts. While some lawmakers argued the facilities provide few long-term jobs and exhaust power grids, Senator Matt Harrington warned the bill would kill massive investments and industrial campus projects.

In South Carolina, representatives introduced resolution H-5286 to implement a temporary moratorium on new data center projects until 2028. The proposal, currently under review by the Committee on Ways and Means, would prohibit officials from granting building permits or economic incentives. The move is driven by residents in Marion County who fear increased utility bills and noise pollution.