Data Center Bans Passed in Three Cities This Month

Local governments approved restrictions on data center construction in three cities this month. Holyoke, Massachusetts, Monterey Park, California, and Seattle, Washington, each passed bans or limits on new facilities. A state budget signed in Arizona included a three-year moratorium on tax breaks for data centers.

Officials said the provision followed lobbying from community groups and organized labor.

Voters in Festus, Missouri, removed half the city council after members approved a $6 billion data center project. A Gallup poll conducted in May found 71 percent of Americans would oppose a data center in their area. Activists in El Paso, Texas, sought to rescind tax breaks granted to a company in 2023.

At a city council meeting last week, roughly 180 speakers addressed the council over eight hours before the measure failed 5-3. A city council member who introduced the proposal said the turnout reflected new community engagement and could influence future elections.