Local Governments Globally Implement Data Center Moratoria and Restrictions

Local governments in the United States and Australia are increasingly imposing moratoria and strict zoning laws to curb the growth of large-scale data centers. On May 7, 2026, the Eastern Band of Cherokee Indians Tribal Council approved an indefinite ban on high-impact digital infrastructure to protect water resources and wildlife. Similarly, officials in Florida's Citrus and Adams counties moved toward tighter regulations and potential moratoria to protect limited electricity and water supplies.

Community opposition led to the direct cancellation of projects in the Midwest. In Ferguson, Missouri, the city council rejected tax incentives for a $1.8 billion project by SSL Investments, while Beale Infrastructure withdrew a 300-acre proposal in Gardner, Kansas, after the city denied incentives. These actions align with hearings in Baltimore and Lysander, Ohio, where officials debated pauses on new approvals to study cumulative impacts on health and the power grid.

Internationally, the government of New South Wales, Australia, launched an inquiry into the industry's impact. Testimony revealed that poor planning of the state's 90 data centers has caused power instability and air pollution. Officials in Sydney and Lane Cove have called for a moratorium on new approvals until sustainable consultation guidelines and designated zoning areas are established.