States and Cities Across U.S. Propose Bans on New Data Center Construction

Backlash over environmental impact and energy costs leads to calls for moratoriums on data center development

Published on Feb. 25, 2026

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Across the country, public opposition to the rapid growth of data centers and AI infrastructure is leading to a variety of new policies, including proposed bans and moratoriums on new data center construction. Several states and cities have already passed temporary halts on issuing permits for new data centers as lawmakers seek to study the environmental and economic impacts of the industry. The political resistance comes as major tech companies plan to spend hundreds of billions on data center buildouts in the coming years.

Why it matters

The data center boom has sparked concerns over the industry's energy consumption, environmental impact, and strain on local infrastructure and resources. Lawmakers are responding to constituent pressure by proposing measures to slow or halt new data center development until the full implications can be assessed. This reflects a broader backlash against the tech industry's rapid expansion and the perceived costs it imposes on communities.

The details

In January 2026, New York State proposed a three-year moratorium on new data center permits to allow time for studying the industry's impacts. Similar temporary bans have been passed in cities like New Orleans and Madison, Wisconsin. Concerns include the data centers' energy use, water consumption, noise pollution, and strain on local infrastructure. Tech companies have responded by promising to invest in private power sources and grid upgrades, but activists argue this creates new environmental issues. Lawmakers are also debating whether to end lucrative tax breaks that have incentivized data center development in many states.

  • In early January 2026, Madison, WI passed a moratorium on new data center construction.
  • Several weeks before New York's proposal, New Orleans City Council passed a one-year moratorium on new data center permits.
  • In February 2026, New York State introduced a bill for a three-year statewide moratorium on new data center permits.

The players

Liz Krueger

New York State Senator and co-author of the proposed three-year data center moratorium bill.

Anna Kelles

New York State Assemblymember and co-author of the proposed three-year data center moratorium bill.

Ron DeSantis

Governor of Florida, who announced an AI "bill of rights" giving local communities the right to limit new data center construction.

Bernie Sanders

U.S. Senator from Vermont, who has suggested a nationwide moratorium on new data center construction.

Katie Hobbs

Governor of Arizona, who said she supports pulling tax incentives for the data center industry.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.