US Data Center Developers Face Widespread State Restrictions

Data center developers are facing a surge of local and state-level opposition across the United States, resulting in the delay or disruption of dozens of projects valued at hundreds of billions of dollars. The industry is currently navigating a wave of restrictive measures, including recent bans in Oregon and a local moratorium in Nashville, Tennessee, which forced developer Metrobloks to withdraw from a project.

Ahead of Election Day, more than 40 local ballot measures and several high-profile state races are focusing on stricter development rules. In Texas, Governor Greg Abbott recently paused new approvals, while Democratic candidate Gina Hinojosa has pledged to maintain a ban on new projects until protective legislation is passed. In Ohio, gubernatorial candidates Amy Acton and Vivek Ramaswamy both promised to make the approval process more onerous, with Ramaswamy specifically calling for a halt until facilities provide free power for locals and pay full property taxes.

Similar restrictive stances have emerged in Michigan and Georgia, where candidates are debating pauses to review water and electricity usage. Donald Trump, the President of the United States, has joined the conversation by calling for the industry to ensure facilities provide financial benefits to communities without increasing power prices for residents.