Opposition to data center development has intensified across the U.S.

A fast-growing number of states and local governments have passed or are debating moratoriums on new data center construction. This wave of data center bans spreading across the country threatens to further impede an industry already struggling to secure enough land and power to meet surging demand. 

Bisnow/Jon Banister

Virginia data center opponents protest outside an industry event in 2023.

Data centers have emerged as a major policy concern at the state, local and federal levels. Large-scale projects routinely face heated community opposition due to resident fears about environmental impacts and local quality of life, while broader concerns about these facilities’ massive power consumption generate national headlines. 

These concerns, combined with anxiety about the consequences of the artificial intelligence technologies they enable, have led data centers to become deeply unpopular. Opposition to data centers is proving to be a fruitful position for politicians across the political spectrum and at every level of government.

Over the past three years, efforts to manage or restrict data center development in the industry’s major hubs have risen steadily, but in recent months, many efforts have emerged to impose moratoriums that would pause data center development altogether. These initiatives are gaining traction in hyperscale development hotbeds and locations that draw little interest from data center builders. 

In Congress, Democratic lawmakers Bernie Sanders and Alexandria Ocasio-Cortez unveiled a data center moratorium bill in March. While it faces long odds of becoming law, similar bills at the state level are inching closer to becoming reality. 

Since the start of this year, 14 different states have considered moratoriums on new data center construction. This month, the New York Legislature passed a bill pausing all new data center development for a year. Should Gov. Kathy Hochul sign it into law, New York will become the first state to have a data center moratorium go into effect. 

New York’s potential moratorium comes on the heels of the Maine Legislature passing a similar data center pause, which was vetoed by Gov. Janet Mills in April.

Most state-level moratorium bills propose pausing data center construction for between one and three years while studies are conducted on the facilities’ environmental and economic impacts. Some outliers, like Vermont, have proposed longer bans. The bills generally focus only on pausing the construction of new data centers, although a Wisconsin bill would also halt ongoing operations at existing data centers.

Meanwhile, dozens of county and municipal governments across the U.S. have been passing their own data center bans. Some of these moratoriums have come in areas inundated by large-scale data center projects, like DeKalb County, Georgia, or communities where a proposed data center project proved deeply unpopular, such as in Normal, Illinois. Some towns, like Mansfield, Massachusetts, have passed bans despite drawing no interest from data center developers. 

For many in the data center sector, the political peril facing the industry presents the greatest challenge constraining its growth. Companies are bracing for the possibility that an industry already strapped for developable land may soon find that its options are even more limited.

Below is a list of state and local data center moratoriums that have been proposed this year.

State Moratoriums

New York

Earlier this month, the New York Legislature passed a one-year moratorium on siting, construction or commencement of operations of data centers 20 megawatts and larger. The bill requires the governor’s signature to become law, and it remains unclear whether she plans to sign or veto it.

The bill initially called for a three-year moratorium on new data center development before being amended to just one. It also requires the state’s Public Service Commission to draft new rules regulating data center power consumption. And it mandates an extensive environmental impact report from the Department of Environmental Conservation that would include regulatory and legislative policy recommendations and measure the water and power consumption of data centers already operating in the state. 

Maine

In April, Maine became the first state to have a data center moratorium pass its legislature, with lawmakers approving a bill pausing the development of new data centers in the state larger than 20 MW until November 2027. The governor then vetoed the bill.

Still, a similar bill could be coming in the near future. Despite her veto, Mills has said she supports a temporary pause on new data center construction and would have signed the bill if it had included an exemption for a specific data center project already underway in the state. 

Virginia

A torrent of data center legislation has advanced in the industry’s largest hub, with more than 60 bills introduced in the most recent legislative session aiming to manage its growth across the commonwealth. One of these bills — introduced by Del. Irene Shin, a Democrat representing Fairfax County — aims to implement a moratorium on all new data centers 1 MW or larger. This pause would last until July 2028 or until all data center grid interconnection requests are fulfilled. The bill remains in committee and was pushed into the next legislative session. 

Maryland

In January, Del. Mark Fisher, a Republican, introduced an emergency bill into the Maryland House of Delegates imposing a ban on data center construction and planning of data centers 100 MW and larger. The bill is in committee. 

Vermont

A bill introduced in January by a group of lawmakers in the Vermont General Assembly aims to implement a moratorium on the siting and construction of new data centers until 2030. During that time, the bill requires the state’s Public Utility Commission to report on how data centers impact Vermont’s natural resources and economy. The bill remains in committee. 

Oklahoma

Oklahoma lawmakers are considering a bill from Republican Sen. Kendal Sacchieri to create a moratorium on data center construction until November 2029. Applying to data centers 100 MW and larger, the pause is intended to give the Oklahoma Corporation Commission time to conduct an impact study. The bill is in committee. 

Michigan

Multiple lawmakers in Michigan have introduced bills that would enact a statewide data center moratorium, preventing local governments and the state’s Public Service Commission from approving these facilities to give officials time to evaluate their impact. The moratorium would last until at least April 2027. While these bills remain in committee, Michigan Gov. Gretchen Whitmer, a Democrat, has been supportive of data center development in the state. 

Minnesota

Introduced by Senate Democrats in March, a Minnesota bill would require the state’s Public Utilities Commission to submit a comprehensive report on the impact of data centers by July 2027 and would ban the construction of new data centers larger than 100 MW until a year after the report’s publication. The bill remains in committee. 

South Carolina

A pair of joint resolutions filed by South Carolina lawmakers in April would prevent local and state government agencies from issuing approvals related to data centers until 2028. The bills would also enact a moratorium on applications for new data centers larger than 5 MW until the state government establishes a comprehensive oversight framework. The bills remain in committee. 

Pennsylvania

A bill introduced this month in the Pennsylvania Senate by Democrat Katie Muth would ban the construction of “high impact” data centers 25 MW and larger for three years. The bill, now in committee, also mandates new studies on the impact of these facilities and authorizes local governments to enact their own data center bans. 

Georgia

Georgia lawmakers are considering a bill that would ban data center construction for a year starting in July. Introduced by Democrat Jaha Howard, the bill remains in committee. A similar bill introduced in the Georgia House of Representatives would pause data center construction until 2029 while the state conducts an impact study. 

New Hampshire

Legislation in New Hampshire calling for a one-year moratorium on data center construction was killed in committee in March.

Wisconsin

A bill introduced in Wisconsin would have been among the most restrictive moratoriums under consideration, applying not just to new construction but also to the operation of existing data centers larger than 100 MW. However, the bill was killed in committee in March. 

South Dakota

A House bill in South Dakota would have temporarily banned the construction or expansion of data centers over 50 MW until July 2027. The bill didn’t advance through committee. 

Local Moratoriums

According to datacenterbans.com and local news outlets, more than 100 cities, towns and counties have also proposed or passed data center moratoriums. 

Alabama

California

Colorado

Connecticut

Delaware

Georgia

• DeKalb County
• Camden County
• Pike County
• Lamar County
• Troup County
• LaGrange
• Clayton County
• Athens-Clarke County
• Monroe County
• Lee County

Illinois

Indiana

• Fulton County
• Starke County
• Dearborn County
• White County
• Putnam County
• Pulaski County
• Indianapolis (proposed)

Iowa

• Dubuque County
• Johnson County
• Clarke County
• Adair County
• Shelby County

Kansas

• Sedgwick County
• Miami County (proposed)
• Harvey County

Kentucky

• Oldham County
• Scott County
• Meade County
• Ashland

Louisiana

Maine

• Bangor
• Wiscasset
• Lewiston
• Scarborough (proposed)

Maryland

Massachusetts

Michigan

Michigan is the most active state for data center moratoriums, with close to 50 counties enacting or considering such bans. The total area in which data center construction is at least temporarily prohibited is roughly the size of Rhode Island.

• Meridian Township 
• Northville
• Soringfield
• Pontiac
• Sterling Heights
• Detroit (proposed)
• Ypsilanti Township
• City of Ypsilanti
• East Lansing
• Howell
• Mason 
• Armada
• Dundee
• Grand Blanc
• Green Charter
• Hayes
• Lenox
• Lodi
• Manchester
• Pittsfield
• Saginaw
• Saline
• South Lyon
• Sylvan
• Taylor
• Tyrone
• Ann Arbor
• Erie
• Delta County (proposed)
• Washington

Minnesota

Missouri

• St. Charles
• Jackson County (proposed)
• Columbia

Nevada

New Jersey

• Princeton Township
• Phillipsburg

New York

North Carolina

• Charlotte
• Chatham County
• Orange County
• Canton
• Boone
• Gates County
• Brevard
• Clay County
• Kings Mountain
• Apex
• Swain County
• Rowan County
• Boiling Spring Lakes
• Hillsborough

North Dakota

• Morton County
• Mercer County
• Dunn County

Ohio

• Jerome
• Lordstown
• Muhlenberg
• Massillon
• Plain
• Vienna
• Washington
• Ashville
• South Bloomfield
• Ironton (proposed)
• Yellow Springs (proposed)

Oklahoma

Rhode Island

Tennessee

• Nashville (proposed)
• Washington County

Texas

Utah

Vermont

Virginia

Washington

Wisconsin

• Port Washington
• Madison
• Manitowoc County
• Cassville Township
• Waterloo Township

A Virginia-based developer is aiming to bring a new 400-acre data center to North Carolina in a county southwest of downtown Raleigh.

PointOne Data Centers submitted an application to the Sanford/Lee County/Broadway Technical Review Committee to build a 90-megawatt center at 4079 Lower Moncure Road in Lee County, the Triangle Business Journal reported.

The first phase of the project would entail the build-out of the 300K SF facility. Construction would begin this fall, with completion in 2028, TBJ reported.

The proposed project would be a $900M investment, according to TBJ. Texas-based CyrusOne, a global data center developer, would own and operate the site. CyrusOne has built more than 60 data centers globally, including one near Research Triangle Park in Durham that it acquired in 2017. Since then, the company has sought to expand its presence in North Carolina. The state currently houses at least 93 data centers, according to Data Center Map.

Data centers have been a controversial issue in the Carolinas over the past year, with several counties and cities imposing moratoriums on new development. Earlier this week, the city of Charlotte approved a 150-day pause on new projects following public outcry. Lee County does not have a moratorium, but in April, it amended its Unified Development Ordinance to clarify where data centers can be located and what standards they must adhere to.

Data center opponents argue that data center development requires intensive water and power usage and can cause noise pollution and neighborhood displacement. In Raleigh, many residents say water usage is critical as the area faces extreme drought conditions.

But a PointeOne executive told TBJ its data center would use very little water due to its closed-loop cooling system. The executive said it would need an initial fill of 200K gallons and that other water usage for things like restrooms would utilize 1,100 gallons per day. 

If the review committee approves the plan, the next step would be applying for a building permit.

The Charlotte City Council has approved a 150-day pause on new data center development, the latest locality to implement a moratorium amid rising national pushback against construction of the facilities.

The council late Monday voted unanimously in favor of the temporary moratorium. The aim of the pause is to allow the city to study data centers’ infrastructure and analyze the environmental impacts they might have on the area.

“We’ve got to dig deeper. We’ve got to really understand not only the legal framework but also the technical information, whether it’s the data itself or the scientific basis behind the impacts to our communities,” Council Member Victoria Watlington said before the vote. “When we can agree on the facts, then we can talk about good policy, and I think that’s exactly what this 150-day moratorium will do.”

The moratorium won’t apply to projects that have already been approved. Projects that are exempt from the pause include those with a valid building permit and those that have a complete application for developmental approval, according to City Attorney Andrea Leslie-Fite.

The city’s vote adds to the growing list of data center moratoriums around the country. Last week, a city in Southern California passed the nation’s first permanent citywide data center ban. New York state is poised to put in place a one-year moratorium.

Charlotte has been considering a moratorium for months. In May, citizens packed a city council meeting for a public hearing where most speakers pushed for the moratorium, citing negative impacts and increased energy costs stemming from what they called excessive water and power usage. Last week, local activists, politicians and an environmental lawyer held a press conference calling on the city council to approve the moratorium, The Charlotte Observer reported. 

American Tower Corp.’s proposed data center in east Charlotte is one controversial project that many have rallied against. The 40K SF project would be off of Hood Road, near a nature preserve. A public hearing on the developer’s zoning request is scheduled for June 15. 

Moratoriums have become common in recent months across the Carolinas, with Durham passing a 60-day moratorium in May and Apex passing a one-year moratorium in April.  

There are more than 90 data centers in North Carolina, according to Data Center Map, and 40 in Charlotte, according to WCNC. 

Council Member Joi Mayo said before the vote that the conversation around data centers “is not about being for or against innovation.”

“Rather, it’s about taking the time to understand the potential impact of a rapidly growing industry and ensuring our policies keep pace with that growth.”

Charlotte investors are bracing for potential changes to the build-to-rent space.

Charlotte has emerged as one of the strongest BTR markets in recent years, driven in part by population growth and rising housing costs. But some investors are pausing sales as a federal housing bill moves through Congress. The latest version of the bill retains protections for the BTR industry, but its fate remains uncertain.

“We’re not out of the woods yet,” said Jason Esposito, CEO of South Carolina-based homebuilder Center Park Group, which specializes in BTR. “It’s got to go back to the Senate and pass.”

Esposito was speaking at Bisnow’s Multifamily Annual Conference on May 19 at The Union at Station West in Charlotte. Eric Speckman, co-founding principal of investment and development firm Beauxwright, noted a “lack of transaction volume” in the Charlotte BTR market as companies await the bill’s final passage.

“We’re seeing this in real time, particularly on build-to-rent,” Speckman said. “So it’ll be nice, once the legislation gets worked out, to remove some of this uncertainty that investors have.”

In March, major investors mostly stopped buying and financing BTR sites due to the uncertainty of the the 21st Century Road to Housing Act. “Now, it’s kind of a wait-and-see game,” Esposito said. “We have a lot of projects that are at the starting gate that are ready to go.”

On May 20, the House of Representatives passed an amended version of the housing bill that eliminated a controversial BTR provision. That provision, found in a previous Senate version, would have required BTR operators to sell properties after seven years of ownership. The latest bill heads back to the Senate, where a fresh showdown is expected.

Esposito said the provision, if restored, would “completely eliminate additional supply.”

Last year, demand for BTR residences was on the rise in the Queen City, according to the Charlotte Business Journal. As of mid-2025, the Charlotte metro area had more than 4,100 BTR single-family homes under construction, according to a 2025 report by interior building supplier Best Supply, and was ranked second in the space behind Phoenix. 

But the report noted that some national investors had been “slowing new acquisitions after years of aggressive expansion.”

Alex Barroso, executive vice president of Portman Residential, said at the event that BTR is currently facing a lack of tenant demand. 

“Charlotte’s seen a ton of build-to-rent, but some of those have been difficult to lease up,” Barroso said. “They’re a lot slower, which perhaps a lot of developers didn’t assume when they underwrote them.”

Though the space remains “viable,” he says “money is slowly moving away from it.”

But factors like high housing and land costs continued to draw developers to BTR opportunities in Charlotte last year to meet local demand. Among some of the notable deals was Progress Residential’s $27.3M purchase of BTR community Harmon Five Points in October. Barroso said that just a few years ago, BTR was “all everybody and anybody was looking to invest in” in Charlotte.

David Lee, director of land acquisition at JPI, added that “the reason we saw a lot of those deals” is because they are “easier to capitalize.”

Charlotte is still listed among the major markets where “employment diversity, household growth, and suburban expansion continue to support build-to-rent demand” in 2026, according to a recent report by Catalyst Capital Partners.

But the forecast is dependent on what happens with the housing bill. Esposito said investors will continue to pause operations until they see “closure and certainty on the bill.”

BWE has secured $38.92 million to refinance 194 units of Woodland Park by the Lake, a 240-unit gated condominium community in the Bronzeville neighborhood of Chicago, Illinois.

Ryan Morris, vice president, and Max Miller, analyst, both in BWE’s Chicago office, originated the five-year Freddie Mac loan on behalf of the sponsor, a joint venture between a Chicago-based property management firm and a Chicago-based investor group. The joint venture originally acquired 170 units in the property in 2019 as part of a fractured condo deal, and since then, they have purchased more units and substantially renovated those homes. The refinancing accounts for 194 of the total 240 units.

“With its recent stabilization and the strong Chicago rental market, it was the ideal time to refinance so that our client can continue to acquire and renovate additional units in the property,” said Morris. Located at 3423 S Cottage Grove Avenue, Woodland Park by the Lake is a gated, seven-acre residential community.

Crescent Communities opened its latest build-to-rent community, this one in Lawrenceville. The 151-unit project will be Crescent Communities’ 13th multifamily investment in the greater Atlanta market. Its the first under its Harmon brand.

Harmon Cedar Run includes a mix of new townhomes and single-family houses with three or four bedrooms, none of them for sale. Rents for two-story townhomes at Harmon Cedar Run start at $2,545 monthly. That gets three bedrooms and two and ½ bathrooms in 1,663 square feet. 

Rents for standalone houses start at $3,025 for an option with three bedrooms, two and ½ bathrooms, and 2,210 square feet. All townhomes and houses include two-car garages. 

Communal amenities at Harmon Cedar Run include a pickleball and basketball court, a large pool, a playground, pet spaces, and EV outlets in each garage. 

The HARMON portfolio is supported through its joint venture partnership with an account managed by Heitman LLC, which recently increased its commitment from $235 million to $345 million.

Harbor Group International purchased Chronicle Mill at 96 Catawba St. in Belmont from Armada Hoffler Realty Trust (AH).

The Charlotte Business Journal reports the Chronicle Mill is a 238-unit adaptive-reuse apartment complex with 9,000 square feet of commercial space. The project comprises Studio, 1 Bed, and 2 Beds. Rents range from $1,335 – $2,176 per month. The redevelopment of the mill was a $60 million investment.

AH Realty Trust paid $1.4 million for the property in 2020.

Harbor Group’s acquisition of the adaptive-reuse project is part of a $562 million portfolio transaction,. Harbor Group is acquiring 11 multifamily properties from AH Realty Trust in the transaction.

Chronicle Mill was the 28th textile mill built in Gaston County and the first built in Belmont. The idea for the mill is credited to Robert Lee Stowe, a local merchant. It was built in 1901.

Koeppel Rosen LLC, leasing and management agent for the Rosen family portfolio, secured five new office leases totaling 15,474 square feet at 1261 Broadway, an 11-story building in Manhattan’s Midtown South neighborhood. The leases included the following:

• Abell Eskew Landau LLP signed a new 7772-square-foot lease in a relocation from its previous space at 265 Fifth Ave. The law firm was represented by Nick Farmakis and Jordan Weiss of Savills.

• Law firm Hunter Cottingham PLLC signed a lease for 4,599 square feet. Robert Yaffa of RDY Advisors, LLC, and Claire Koeppel of Newmark represented Hunter Cottingham.

• Joseph J. Blake and Associates, Inc., a real estate appraisal and valuation firm, leased 1,467 square feet and was represented by Bradley Cohn of Adams & Company Real Estate.

• Nisso & Co Trading Corp., a wholesale jewelry distributor, leased 955 square feet.

• RSLT Capital Management LLC, an investment management firm, leased 681 square feet, represented by JD Cohen of Newmark & Company Real Estate, Inc.

“Tenants across a variety of industries are focused on securing efficient workspace in highly accessible Midtown locations,” said Max Koeppel, director of leasing at Koeppel Rosen, who represented ownership in-house for all five transactions. “Many tenants are finding that at 1261 Broadway, which offers flexibility, strong value relative to the market, and floor plates that work well for tenants in this size range.”

Related Companies and Lennar have reached a milestone with the raising of the Barn. Anticipated to open Fall 2026, the custom post-and-beam structure will anchor Market Square, a destination food market at the center of The Village at Tuxedo Reserve. The Village in turn is the heart of Tuxedo Reserve, an upcoming 1,200-acre mixed-use downtown district in Tuxedo, NY.

The Village at Tuxedo Reserve will feature shops, restaurants, bars, services, luxury rental residences, and experiential gathering spaces. Within the larger Tuxedo Reserve, the first hamlet, West Terrace, is now selling with a choice of five different floorplans.

“The Barn raising signifies a major step towards an entirely new kind of Hudson Valley destination,” said Greg Gushee, EVP at Related Companies. “Upon completion, The Village at Tuxedo Reserve will create a place unlike anything in the region where people can return to again and again – whether for a weekend getaway, dinner with friends, unique outdoor experiences, or the everyday conveniences that have long been missing from this area.” 

Gantry has secured a $16 million permanent loan to refinance the Kirkland Business Center located at 11860 NE 112th St in Kirkland, Washington.

Originally delivered in 1962 and 1969, the 104,000-square-foot, multi-tenant buildings are 100% leased to a range of small bay tenants. Gantry’s Principals Mike Wood and Mike Taylor, and Senior Associate Tim Brown, with the firm’s Seattle production office, represented the borrower, a private real estate investor. The seven-year, fixed-rate loan was provided by one of Gantry’s correspondent insurance company lenders and features cash-out proceeds with full-term interest-only payments. Gantry will service the loan on behalf of the lender.

“Well-located Puget Sound multi-tenant industrial continues to be a preferred allocation target for our network of insurance company lenders,” said Wood. “Their stable, fixed-rate permanent programs are attractive for legacy hold investors seeking to capitalize on long-term appreciation, historic performance, and strong operating metrics.”