Several US States Consider Temporary Moratoriums on New Data Centers

Data centers have expanded across the United States, with over 4,000 facilities operating nationwide, according to the Data Center Map. Virginia hosts the largest cluster of data centers in the world, while significant growth has occurred in Texas and California. This expansion supports technologies such as artificial intelligence, which require substantial computing power.

In response to the growth, lawmakers in multiple states are proposing temporary moratoriums on new data centers. These measures aim to allow time for studies on electricity and water consumption, as well as economic impacts including jobs. At least four states besides Maine are considering similar bills.

lawmaker Melanie Sachs sponsored a bill earlier this year to impose a temporary ban on new large data centers.

The bill passed the Democratically-controlled House with support from six Republican votes. The state Senate has yet to vote, and Maine Gov. Janet Mills has indicated support if it passes the legislature.

The proposal emerged after two data center projects were revealed in different Maine communities. Sachs stated that local communities had limited knowledge of these projects and lacked permitting processes for such developments in rural areas. The ban would remain in effect until late 2027, providing time for state regulators to develop rules for large data centers.

An amendment to exempt existing data center projects from the ban failed in the House. Without exemptions, those projects may not proceed. The legislation addresses the high energy needs of data centers that power artificial intelligence and other computing tasks.

temporary bans are proposed in New York, South Carolina, Oklahoma, and Vermont.

South Carolina Rep. Steven Long, a Republican, cosponsored a moratorium in his state, noting that public policy has not kept pace with recent changes in the industry. These proposals span both Democratic and Republican-led states.

At the local level, dozens of counties and municipalities have enacted bans, often in response to specific data center proposals. Nationally, more than 140 local groups have blocked or delayed over $60 billion in data center investments in the past year, according to Data Center Watch, a nonpartisan research firm.

The Data Center Coalition, which represents big tech companies and data center developers, stated that the industry provides jobs, investment, and tax revenue to states and communities.

Dan Diorio, vice president of state policy at the coalition, said a moratorium could discourage investment and signal an unwelcoming business climate. He noted that advanced industries rely on predictability for multibillion-dollar projects.