US Cities and States Impose Data Center Moratoriums

Local governments across the United States are increasingly implementing moratoriums on large-scale data center development to evaluate infrastructure strain. In Minnesota, the cities of Rosemount, Eagan, and Inver Grove Heights passed temporary bans, while Minneapolis halted most approvals to update zoning rules. Similar actions have spread to Oregon, where Governor Tina Kotek announced a one-year pause on approvals for data centers on state-owned land following mass protests in Salem. In South Carolina, at least 15 counties, including Fairfield, have proposed or passed bans, contributing to the delay of projects like Project Spero and Project Liberty.

Other regions are adopting cautious regulatory frameworks. The Pasco City Council in Washington enacted a six-month moratorium, and Clearfield, Utah, voted for a 180-day pause following a controversial 20,000-acre proposal by businessman Kevin O'Leary. In California, Riverbank approved a 45-day moratorium, while officials in Montana and Iowa are considering similar measures. Conversely, the Lancaster County Board of Commissioners in Nebraska opted for study task forces instead of a moratorium after a zoning amendment was proposed by Bold Nebraska.

President Donald Trump has advocated for these facilities as essential economic drivers, warning that communities rejecting them risk becoming poor. Proponents, such as the National Taxpayers Union, argue that data centers expand the property tax base. However, critics like Minnesota State Senator Erin Maye Quade argue that tech companies use tax breaks to blunt community opposition while forcefully integrating AI into daily life.