The rapid expansion of artificial intelligence is leading to a significant increase in data centers in the United States. This growth is prompting caution among lawmakers and communities. According to the National Conference of State Legislatures (NCSL), legislators in at least 14 states are considering bans or temporary pauses on building new facilities. These centers, which consume large amounts of electricity and water, have sparked debate. Critics say caution is needed to give local leaders time to weigh long-term impacts. Supporters, including the Trump administration, argue data centers are vital for competing with China in AI.
In 14 states, moratoriums are under consideration. Some municipalities, like Monterey Park in California, have already enacted bans. These join other areas in Georgia and Indiana with similar restrictions. Efforts to limit data centers include Georgia’s proposal to halt construction until 2028 and a vetoed proposal for a moratorium on large facilities in Maine until late 2027. Similar attempts have not succeeded in states like Oklahoma, Minnesota, and New Hampshire.
South Carolina has introduced measures to delay local approvals of data centers until the state establishes a comprehensive oversight framework. Meanwhile, Pennsylvania legislators are calling for a three-year halt on new data centers to be paired with impact studies.
Currently, the U.S. houses over 3,000 data centers, with over 1,500 more under construction, according to the Pew Research Center. Most planned centers are in rural regions, especially in the South and Midwest, while 87% of existing centers are in urban areas. Virginia and Texas have the highest number of operating data centers, followed by California, Ohio, and New York.
Concerns also stem from data center locations near the Ogallala Aquifer, a critical groundwater resource supporting American agriculture. Facilities both proposed and under construction are situated near this aquifer. Microsoft plans to expand data centers by acquiring about 3,200 acres in Wyoming. Other significant projects are proposed for Natrona County, Wyoming, and San Angelo, Texas.
The Ogallala Aquifer spans eight states and is a vital water source in North America. Depletion in certain areas has been notable, with some regions losing over 100,000 acre-feet annually, and almost 27% of stored water has disappeared in some places. Colorado State University’s Professor Sudeep Pasricha highlights the aquifer’s slow recharge rate, often less than an inch per year, far below the removal rate for irrigation. This lost water may take centuries to centuries to return.
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