US Local Governments Impose Moratoriums and Bans on Data Centers

Multiple U.S. local governments are taking restrictive actions against data center development to protect land and address community concerns. In California, the Alhambra City Council unanimously approved an ordinance on July 27, 2026, to place a city-wide ban on data centers on the November 3 ballot. This move follows a similar successful vote in Monterey Park, where Measure NDC banned data centers with 88% support to block a project by HMC StratCap. Alhambra Mayor Jeff Maloney described the industry as a "gold rush" prioritizing quick profit over housing and recreation.

Similar restrictions are emerging in the eastern U.S. On July 29, 2026, the Montgomery County Council in Maryland unanimously approved an 18-month moratorium on new data center permits. This legislative action extends a previous six-month executive order and aims to resolve issues regarding tax policy, water usage, and noise. The decision drew disappointment from Atmosphere Data Centers, which is developing a campus in Dickerson.

Further proactive measures are appearing in Wisconsin, where the Town of Janesville Planning and Zoning Committee recommended a 12-month moratorium. Conversely, a Milwaukee Common Council committee postponed a vote on a moratorium due to legal concerns over state-mandated public hearing requirements. Advocacy groups like No Data Center San Gabriel Valley continue to push other regional cities, such as El Monte and Baldwin Park, to adopt similar bans.