
Many localities have tried data center moratoriums, tracker finds
A new National League of Cities (NLC) tracker found that at least 76 US local governments have attempted data center moratoriums or permanent bans, with most succeeding. These actions, alongside zoning changes and community opposition, reflect growing local concerns over data center impacts on electricity, water, and neighborhoods. The NLC tool aims to help local leaders make informed decisions.
The National League of Cities (NLC) has launched a new tool to track local government actions concerning data centers, revealing that at least 76 cities, counties, or towns across the U.S. have attempted to implement moratoriums or permanent bans on development, with the majority of these efforts proving successful. This local-level trend complements more stringent state-level measures, including strict regulations, audits, tax break removals, and outright moratoriums.
Several localities have already enacted permanent bans, including Marshall County, Indiana; Monterey Park, California; and St. Charles, Missouri. Georgia stands out as a leading state, where the Georgia Tech’s Energy Policy and Innovation Center tracker indicates nearly 40 local governments have approved some form of moratorium. Other states with significant local activity include Illinois and North Carolina; for example, the Charlotte City Council unanimously voted for a 150-day moratorium on new data centers due to concerns over rising electricity and water prices. However, some proposed moratoriums have failed, such as in Cheyenne, Wyoming; Gardner, Kansas; and Pulaski County, Alaska.
Local leaders consistently express concerns about data centers' impact on residents' electricity and water bills, as well as on neighborhoods and the environment. Beyond moratoriums, the NLC tracker notes that at least 28 city and county governments have passed ordinances, including adjustments to zoning and development laws. Communities have also mounted various forms of opposition, from resident-led petitions seeking public votes to recall elections against supportive local officials. Conversely, some cities like St. Louis, Missouri, have negotiated comprehensive development agreements, securing around $15 million in community benefits for a proposed data center project.
While some policy experts, such as Jennifer Huddleston of the Cato Institute, argue against singling out data centers and advocate for broader energy policy discussions, they maintain that decisions are best handled at the local level. Former President Donald Trump has also publicly encouraged local officials to accept data center developments, highlighting their economic benefits.