US Cities and Counties Move to Ban Data Centers

Local governments across the United States are moving to restrict the development of large-scale data centers, citing concerns over resource consumption and infrastructure strain. On September 2, the Eureka City Council unanimously approved a 45-day moratorium to review regulations for AI and cloud computing facilities, specifically noting risks from lithium-ion battery fires and potential utility rate hikes.

In Colorado, the Loveland City Council signaled its intent to impose a temporary moratorium on September 2, noting that a single 70-megawatt facility could consume 37% of the city's peak power demand. A formal resolution is expected by September 15, which would align Loveland with other regional entities like Denver and Boulder.

Meanwhile, the Fresno City Council is debating a proposal on September 3 for a 10-year ban on new data centers. Co-sponsored by Mayor Jerry Dyer, the resolution targets facilities used for AI training and cryptocurrency validation. While supporters argue these centers provide few jobs relative to their water and power usage, some council members have demanded the release of nondisclosure agreements between the city and data center firms.

In North Carolina, residents of Lee County have petitioned the Board of Commissioners for a 180-day moratorium. The request follows a proposal for a 430-acre campus by CyrusOne, with petitioners seeking stricter noise decibel limits and mandatory closed-loop cooling systems.