An increase in temporary moratoriums and other strict conditional restrictions have been introduced by several state governments to pause the construction of new data centers. Concerns over massive water usage, strained power grids and rising utility bills for residents has driven lawmakers to conduct impact studies and rewrite regulations.
At least 12 states have introduced measures to temporarily ban or strictly regulate large-scale data center development.
“It is time for a temporary moratorium on new hyperscale data center development in Texas until we fully assess the long-term impacts on our infrastructure, agricultural economy, and communities,” Sid Miller, Texas Agriculture Commissioner, said. “We must not surrender our resources to global corporations without asking hard questions about the costs to Texas families, farmers, ranchers, and property owners.”
While temporary bans and strict permitting limits have been introduced or proposed in Georgia, Maryland, Michigan, South Dakota, Vermont, Virginia, and Wisconsin, other sates have introduced bills to establish strict guidelines. These states include:
Maine: Maine briefly became the first state to pass a statewide data center moratorium targeting large facilities, although Gov. Janet Mills vetoed the legislation.
New York: State lawmakers introduced a three-year statewide moratorium (S9144) to establish strict guidelines for utility rates.
Oklahoma: Introduced a bill (SB 1488) to establish a moratorium on new data center buildings until November 2029.
South Carolina: Lawmakers have proposed freezing permits for new data centers until a comprehensive oversight framework is adopted.
Many municipalities and counties are successfully enacting local bans to block or pause data center construction. Seattle, Denver and Minneapolis are leading the way with increased action.
Both state-wide and local bans create “breathing room for lawmakers, regulators, utilities, water experts, landowners, and agriculture to craft responsible guardrails before the industry outgrows our ability to manage it,” Miller said.
The National Conference of State Legislatures gives data center policy overview by state and a breakdown of where active bans and restrictions stand.
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