U.S. Local Governments Implement Data Center Bans and Restrictions

Local governments across the United States are enacting bans and strict regulations on data centers to mitigate the strain on water supplies, power grids, and local infrastructure. In California, Monterey Park became the first U.S. city to permanently ban data centers via a public vote, with 86% support. Alhambra has since placed a similar measure on its ballot, while developers in El Segundo withdrew proposals following community backlash.

Similar trends have emerged in the Southeast and Mid-Atlantic. Florida's Walton County adopted a permanent ban, while the Pensacola City Council passed a one-year moratorium. In Alabama, the Pinson City Council held the first reading for a 12-month moratorium to prepare for potential infrastructure costs. In Maryland, Baltimore County officials are considering extending an existing moratorium set to expire January 1, 2027. A staff report recommends that any future approvals be conditional, restricting facilities to industrial areas with significant setbacks from homes and schools.

Opposition is driven by warnings from grid operators like PJM Interconnection, which states that data center growth is outpacing power generation and increasing electricity prices. Critics also cite the high water consumption of these facilities and a lack of permanent job creation relative to the land used. Conversely, some leaders in Pennsylvania and Michigan view the industry as a potential driver of economic revitalization for regions affected by the decline of the coal industry, provided strict zoning ordinances protect groundwater and noise levels.