New York enacts data center moratorium, other states consider bans
While no U.S. states have outright bans on data centers, New York has enacted a one-year moratorium on new hyperscale data centers and imposed strict energy efficiency standards. Additionally, 16 other states have introduced legislation for bans or temporary pauses on data center construction, though many of these bills have failed or are still pending.
Despite public opposition and concerns over AI's environmental impact, no U.S. states have enacted outright bans on data center construction. However, New York stands as the first and only state to implement a one-year moratorium on new hyperscale data centers, a measure signed into law by Governor Kathy Hochul in conjunction with strict energy efficiency standards for facilities with peak demands of 1 megawatt or more. This action follows widespread national discourse on data center expansion, with a recent New York Times/Sienna survey indicating 61 percent of Americans oppose new construction.
Beyond New York, legislative efforts to ban or temporarily pause data center development have been introduced in 16 other states. Bills proposing moratoriums or restrictions have emerged in states such as Delaware, Georgia, Michigan, New Jersey, Pennsylvania, South Carolina, South Dakota, Vermont, and Virginia. These proposals often aim to halt permitting for several years or until comprehensive impact studies can be conducted.
While some bills remain in committee or have been carried over for future legislative sessions, many have failed to pass. For instance, Maine's Governor Janet Mills vetoed a moratorium bill, and similar legislation in Maryland, Minnesota, New Hampshire, Oklahoma, South Dakota, and Wisconsin did not advance. The ongoing debate highlights a tension between rapid technological growth and local concerns over energy, water, and environmental impact, even as the Trump administration has cautioned against