These Cities and States Are Taking Aim at Data Centers

Published
Score
6

Why it matters

Cities and states are proposing bans, surcharges, zoning restrictions, and environmental regulations on data centers due to their surging electricity demand (projected to reach 130 GW or 12% of U.S. total by 2030) and environmental impacts like 105 million metric tons of annual CO2 emissions, mostly from fossil fuels (56% of power source).[2][4][7][13]

Lawmakers in over 10 states, including New Jersey, Kansas, Connecticut (SB 1292 for AI data center reporting and efficiency standards), and Minnesota (SSHF16 for water evaluations and green certifications), have introduced temporary construction bans, special surcharges for grid funding, and impact assessments.[1][7] Local actions target companies like Amazon (rejected in Tucson, AZ, leading to 30% recycled water ordinance; abandoned in Frederick County, MD) and Microsoft (tax breaks in Illinois and Washington).[1][3] Cities such as Phoenix (AZ) and Fairfax County (VA) enacted noise/zoning ordinances; coalitions in 17 states oppose 30+ projects, with protests in Michigan against OpenAI/Oracle's $7B Stargate.[1][3] Virginia (665+ centers) and Texas lead growth amid backlash.[5][9]

This stems from AI-driven data center explosion—doubling from 2018-2021, then again by 2024 to 5,381 facilities, consuming 4.4% of U.S. electricity in 2023 (176 TWh), straining grids and slowing decarbonization.[2][13] Timeline: Incentives peaked pre-2025 (e.g., Mississippi coal extension, South Carolina deregulation); opposition surged in 2025 with bills, Dec. 8 coalition letter for moratorium, Sen. Bernie Sanders' call, and Q2 2025 protests by 53 groups.[1][3]

Newsworthy now (April 2026) as demand nears doubling to 150 GW by 2028—like adding Spain's needs—exacerbating grid delays, rising bills, water strain (e.g., 731-1,125M cubic meters/year), and emissions spikes for Big Tech (Google, Meta, Microsoft), clashing with net-zero goals amid 3,000+ new centers planned.[3][5][7][8][12]

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