The “techlash” against data centres
A growing "techlash" against data centers is leading to bans and moratoriums in over 500 US counties and municipalities, blocking or delaying numerous projects. The opposition is primarily driven by local concerns over energy and water use, construction disruption, and traffic. Politicians, including Texas Governor Greg Abbott and former President Donald Trump, are increasingly weighing in on the issue.
A significant "techlash" against data centers is sweeping across the United States, with more than 500 US counties and municipalities enacting bans or moratoriums on their development. This backlash has led to the blocking or delaying of at least 75 data center projects, valued at approximately $130 billion, in just the first three months of 2026, according to Data Centre Watch.
While initial media coverage linked opposition to a general distrust of Big Tech and AI, surveys indicate that local impacts such as energy consumption, utility and water bills, construction disruption, and traffic are the primary concerns for residents. The issue has become a surprising battleground in US politics, with figures like Texas Governor Greg Abbott, previously a proponent of AI development, now expressing strong reservations, stating data centers have "dug their own grave" by overreaching. Former President Donald Trump also weighed in, arguing that communities should embrace data centers for economic prosperity.
Economists and some commentators, including The Economist, contend that blocking data center growth is a mistake. They argue that concerns over water usage are often exaggerated, noting that many modern data centers recycle water, and that increased energy demand from data centers can help spread the fixed costs of utility infrastructure. They suggest that pricing resources according to scarcity, rather than arbitrary bans, would be a more effective approach.