US States and Cities Push Data Center Moratoriums

A growing movement of US state and local governments is restricting the development of AI data centers due to concerns over electrical grid strain, water consumption, and environmental impacts. In New Mexico, Democratic gubernatorial candidate Deb Haaland has proposed a day-one executive order to moratorium new large-scale projects until renewable energy and local hiring requirements are met. Her opponent, Republican Gregg Hull, rejects a statewide ban, arguing that such a proposal removes local autonomy.

Similar battles are unfolding in Florida, where Democrat David Jolly has promised a year-long statewide moratorium. Republican Byron Donalds supports state law SB 484, which requires facilities to pay their own service costs and use reclaimed water, while opposing a total ban. At the state level, Governor Greg Abbott of Texas has paused approvals for approximately 1,800 projects, and Governor Josh Shapiro of Pennsylvania signed an executive order to rein in the technology.

Local restrictions are proliferating in cities like Boston, where Councilor Miniard Culpepper proposed a zoning amendment to prohibit new centers, and Sandpoint, Idaho, which banned standalone facilities larger than 5,000 square feet. In New Jersey, Assemblywoman Annette Quijano introduced legislation to delay approvals and incentives for two years to study statewide impacts. Meanwhile, voters in Trenton, Ohio, will decide on November 3 whether to ban facilities requiring more than 25 megawatts of electricity per month.

President Donald Trump has diverged from this trend, dismissing AI fears as a hoax and arguing that data centers are essential economic engines. He claimed that without such infrastructure, voters would be backwards and poor.