The Data Center Boom and Growing Resistance Across American States

In the context of rapid digital technology development, data centers are experiencing an unprecedented boom across the United States. However, this expansion comes with increasing concerns about energy consumption, natural resource usage, and environmental impact, prompting many states and municipalities to consider restrictive measures or even outright bans on these facilities.

Global and US Energy Consumption Landscape

According to a United Nations report published in June, global data centers are projected to consume double the amount of electricity and water by 2030 compared to current levels. This figure reflects the continuous expansion trend of technology companies scaling their networks.

In 2025, global data centers consumed 448 terawatt-hours of electricity, with artificial intelligence (AI) accounting for one-fifth of total consumption. Simultaneously, these facilities consumed approximately 4.5 trillion liters of water and emitted 189 million tons of carbon dioxide.

Global Energy Consumption Summary (2025)

In the United States, the energy demand from major data centers has increased by approximately 11.3 GW in 2025, reaching a total of 61.8 GW. According to a 451 Research report, energy demand for IT equipment, cooling, lighting, and other purposes is expected to reach 75.8 GW in 2025, rising to 108 GW by 2028 and 134.4 GW by 2030. These figures do not include demand from companies outside major technology sectors.

State and Citizen Reactions

There are currently over 4,300 data centers already built in the United States, according to the Data Centre Map database. As more companies push to deploy data centers at an accelerated pace, many states are introducing stricter regulations to limit development.

Citizens are also strongly opposing data center construction. A recent Gallup poll shows that 70% of Americans oppose building data centers in their communities, with more than half strongly opposing them.

According to the National Conference of State Legislatures, at least 38 states have offered tax incentives to attract data center development, while at least 14 states are considering bills to pause or ban new construction. However, due to differing views on development and data center investment, most of these bills have not been passed.

States Considering Restrictions or Bans on Data Centers

Municipal Actions

Monterey Park in Los Angeles, California, has become the first city in the United States to impose a permanent ban on data center development, following widespread public pressure. Several other cities have implemented indefinite moratoriums, but Monterey Park is the first to do so through a voter initiative.

Early in June, preliminary results showed nearly 90% of residents voting in favor of the ban, following numerous complaints that data centers were driving up utility costs, depleting water resources, and polluting neighboring communities.

"This clearly shows that the people of Monterey Park don't want data centers in their community," said Jose Sanchez, a city council member. "We hope that other communities will use the model set by people here to prevent data centers from encroaching on their backyards."

In Port Washington, Wisconsin, voters passed a measure requiring local officials to obtain voter approval before offering tax incentives to data center developers. In November, residents of Janesville, Wisconsin, are expected to vote on a measure requiring the city to seek voter approval for any new data centers valued at over $450 million.

New York Takes Lead in Implementing Ban

In June, New York moved closer to becoming the first state in the US to implement a moratorium on large data centers when the state legislature passed a one-year ban on such facilities. Governor Kathy Hochul now must decide whether to sign the moratorium into law.

"Big tech has been used to making its own rules or having no rules to follow when it comes to new technology," explained New York State Senator Kristen Gonzalez, who co-authored the bill that would temporarily ban "super-scale" data centers of over 20 MW. "This is really the first time we're drawing a line and saying that as a state legislature, we have a responsibility to ensure New Yorkers are the ones making the decisions."

The moratorium primarily targets large technology companies developing massive data centers, with at least 28 large data centers and total energy demand of 9.7 GW currently under consideration. "We shouldn't have to sacrifice our water, energy, green space, and local communities for big tech and specifically generative AI, which is often used for things like AI waste," Gonzalez said.

Future Outlook

More states are expected to follow New York's lead as citizens place greater pressure on legislators to restrict data center development, addressing concerns about future energy demand and rising utility bills. While some states continue to welcome the heavy investments that data center development brings, others are being more cautious in evaluating potential energy and environmental impacts.

The explosion of data centers, particularly due to growing demand from AI and cloud computing, raises questions about balancing technological advancement with natural resource conservation. While technology companies continue to invest billions in data center infrastructure, communities and policymakers are seeking ways to ensure this development doesn't come with excessively high environmental and quality-of-life costs.

This debate will certainly continue as we move toward 2030 and beyond, as the energy and resource demands of data centers continue to rise, presenting new challenges for both the technology industry and policymakers.