US Cities Implement Data Center Moratoriums Over Infrastructure Concerns

Local governments across the United States are implementing temporary moratoriums on data center development to address gaps in zoning laws and infrastructure capacity. In California, the Morgan Hill City Council voted unanimously on October 21 to extend a moratorium on freestanding data centers and grid-scale battery storage for over 22 months. This action followed an Amazon project in neighboring Gilroy that bypassed local approval via outdated rules. While Mayor Mark Turner stated the pause is not a ban but a way to develop community-fit policies, trade unions including UA Local 393 opposed the move, arguing it denies skilled laborers lucrative jobs.

Similar measures have emerged in Colorado and Alaska. The Lafayette City Council passed an 18-month moratorium on October 20 to research environmental impacts and refine land use codes that currently treat all data centers equally regardless of size. This follows a trend of similar bans in Denver and Boulder County, though other Colorado regions like Weld County continue to approve expansions.

In Alaska, Mayor Hopkins introduced an ordinance to halt large-scale data centers—those requiring 50,000 square feet or 5 megawatts—through 2027. The proposal responds to Department of the Air Force requests to lease land near Eielson Air Force Base, with Hopkins citing power supply limitations. Meanwhile, commissioners in Davidson County, North Carolina, are considering a four-month pause to evaluate noise pollution, heat production, and water supply impacts.