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

Charlotte residents packed a city council meeting this week to rally in support of a pause on data center development.

The Charlotte City Council held a public hearing during a meeting on Tuesday to discuss a proposed 150-day moratorium. The public hearing was a prerequisite to a planned council vote on June 8. 

The hearing comes after several weeks of growing public pushback against proposed data center projects in the city. Dozens of people were protesting outside, many part of activist groups, according to The Charlotte Ledger. Out of the 36 people who spoke up at the hearing, only five did not support a moratorium, the Ledger reported.

Citizens detailed their anxieties about the presence of data centers in the metro area, with some suggesting the centers be completely banned. They cited negative environmental impacts and increased energy costs stemming from what they called excessive water and power requirements.

Charlotte is facing drought conditions and water restrictions. But large data centers can use up to 5 million gallons of water each day, according to The Brookings Institution. 

“We are concerned that the growth of local data centers may overallocate our limited resources and decreases our ability to respond to drought,” resident and Catawba Riverkeeper Brandon Jones said. “Sustainable water management requires careful planning and robust coordination between all users, including data centers.”

Some spoke directly against American Tower Corp.’s proposed data center in east Charlotte, which has seen opposition at every stage. The project would span 40K SF on a site planned off of Hood Road, near Reedy Creek Nature Preserve. The developer delayed its zoning request until June 15.

“The question for me is, how do we build a footprint that makes Charlotte a national leader in distributed, resilient, redundant infrastructure without devouring our land, our water and our power?” said citizen Craig Reynolds, a business executive, whose question was met with applause.

He asked council members to consider the sheer scale of data center projects, which he said can command “eight to 14 times the combined residential power” of a city.

Another local, Tina Shull, a professor at the University of North Carolina at Charlotte, said she is “deeply concerned” about the impacts of the American Tower data center in her neighborhood, as well as the two already approved hyperscale centers in the city.

“This is a request to stop and make a new plan for data centers entirely,” Shull said. “A 150-day moratorium and an environmental impact assessment are the first steps.”

Resident Larry Shaheen, a commercial real estate lawyer at The McIntosh Law Firm, spoke in favor of data centers, saying they provide “a significant amount of tax revenue that is going to go toward funding important needs of the city of Charlotte.” 

He also said the council doesn’t have the authority to cease construction on an already started project or to change certain zoning classifications. His comments drew audible “boos” from the room.

There has been notable backlash against data centers in communities across the U.S. over the last year, including across the Carolinas. Moratoriums in the region are becoming increasingly common, with Durham passing a 60-day moratorium earlier this month, Apex passing a one-year moratorium in April, and Chatham County imposing a one-year moratorium in February. 

Still, there are more than 90 data centers in North Carolina, according to Data Center Map, and 40 in Charlotte, according to WCNC. More are expected as the rapid artificial intelligence boom continues. 

Conshohocken, Pennsylvania-based CenterSquare has acquired four retail properties, adding to the firm’s essential service retail portfolio.

The latest additions bring CenterSquare’s portfolio to 80 properties nationwide. The acquisitions include the Trade Court Shoppes in Charlotte, the Deer Valley Shops in Phoenix, Lake Mead Gateway Plaza in Henderson, and The Shops at Foothills Mall in Fort Collins.

The Trade Court Shops is a 100% occupied property spanning 14,721 square feet and is the company’s 10th property in the Charlotte MSA. Deer Valley Shops features 17,043 square feet of retail space and is 83% leased. It is CenterSquare’s seventh property in the Phoenix MSA.

Lake Mead Gateway Plaza is a 19,671-square-foot retail center that is 100% occupied and marks the firm’s sixth acquisition in the Las Vegas MSA. CenterSquare’s fourth Colorado property, The Shops at Foothills Mall, is a 111,220-square-foot asset that is currently 88% leased.

Last year, the Atlanta City Council banned new data centers within a half-mile of the Beltline and within a half-mile of MARTA stations, hoping to prevent data centers from gobbling up prime real estate that could otherwise be filled with affordable housing, green space or other quality-of-life investments.

Atlanta officials are now pursuing additional restrictions on data centers.

The Atlanta Business Chronicle reports anyone applying for a permit would be required to submit information about their project’s impact on natural resources and the environment, including a water consumption plan, water conservation and sustainability plan, energy consumption plan, transmission line impact assessment, tree preservation and reforestation plan, and a stormwater management plan.

Data centers are viewed as essential infrastructure for cloud computing, artificial intelligence and other digital capabilities. However, they tend to provide local communities with few permanent jobs, and they consume ample amounts of land, water and electricity.

Register Today to “Be in the Room” when Michael Brennan receives Connect CRE’s Lifetime Achievement Award and will participate in the Keynote Interview with Kevin Brennan, also of Brennan Investment Group. Join us at Connect Industrial Midwest 2025 on the afternoon of Wednesday, March 5, at Joe’s Live in Rosemont, IL, for this exclusive presentation! 

Regency Centers Corporation will develop the Village at Seven Pines, a new ground-up retail project in Jacksonville. Sawmill Timber is selling the land that Regency will develop. Regency will then own and operate the shopping center in the community of 1,600 single-family homes, luxury apartments and more than 1 million square feet of commercial space.

The Jacksonville Business Journal reports the shopping center will serve as the retail component of the Seven Pines mixed-use project. The design for the 175,000-square-foot retail development includes a mix of retailers, personal services and dining options alongside a leading grocery anchor. The retail center will be located at the entrance to the Seven Pines community. The master-planned community is located between the beaches and downtown, south of J. Turner Butler Boulevard and the University of North Florida. It spans approximately 1,000 acres.

The transaction is expected to close in late 2025, and construction is slated to begin in early 2026.

Asana Partners sold the Plaza on Ponce and Morningside Village shopping centers in separate transactions for a combined price of $67.5 million. Atlanta-based 26th Street Partners was the buyer.

The Atlanta Business Chronicle reported that the Majestic Diner and Plaza Theater signed long-term leases at Plaza on Ponce before the sale.

Asana entered the Atlanta market in 2017 with its purchase of Plaza on Ponce, a historic shopping center on Ponce de Leon Avenue. It paid $18.1 million in 2017. It recently sold for $36.1 million. 

Asana bought Morningside Village in 2018 for $21 million. The center spans two sides of North Highland Avenue and includes tenants such as The Family Dog. The property just sold for $31.4 million.

A $120 million project designed to house long-term guests from The Shepherd Center has finished construction. The 16-story residential tower overlooking Peachtree Road more than doubles its housing capacity.

The Shepherd Center, one of the nation’s top spinal cord and brain injury rehabilitation hospitals, says more than half of its patients come from outside Georgia. Previously, the hospital could only provide housing for families for 30 days. The average stay is nearly twice that.

The Arthur M. Blank Family Residences, which has 165 apartments, will welcome its first guests in October. It’s named after Blank, the Home Depot co-founder, the Atlanta Falcons, and the Atlanta United owner, who donated $50 million to the project.

The building has 100 one-bedroom and 65 two-bedroom apartments. Its amenities include a communal kitchen, meeting rooms, library and recreation room. An outdoor garden features a relic of the property’s past: the bison statue from the former Ted’s Montana Grill.

The Shepherd Center expects to open another building next year.

The Atlanta area experienced a 211% increase in data center projects under construction in calendar year 2023, the largest increase in the nation, according to a CBRE survey. Georgia Power tracked 42 data center projects in the pipeline as of March 31.

While most are developed in rural areas or exurbs, some have been developed in the urban core. An effort is underway to prevent data centers from gobbling up prime real estate in neighborhoods connected to transit and the trail loop. The City Council is reviewing a ban on data centers within the Beltline Overlay District and within a half-mile of MARTA stations.

While some real estate organizations view data centers as essential infrastructure for cloud computing, artificial intelligence and other digital capabilities, opponents contend that data centers provide local communities with few permanent jobs and can consume large amounts of land, water and electricity.

Just two weeks ago, Walmart touted that it was opening dozens of new Walmart Health centers. The company has now announced that it will shutter all of them. In a release, the company said, “We determined there is not a sustainable business model for us to continue.”

The company opened its first one in 2019 and has 51 nationwide, 17 in Georgia, nearly all in small—to midsize communities. The stores are all attached to a currently operating Walmart store. As far as workers go:

• All associates are eligible to transfer to any other Walmart or Sam’s Club location.
• All associates will be paid for 90 days, unless they transfer to another location during that time or leave the company.
• After 90 days, if they do not transfer or leave, eligible associates will receive severance benefits.

The company will continue to operate 4,600 Pharmacies and more than 3,000 Vision Centers nationwide.

Earlier this year, Regency Centers completed demolition at the site for Avenida Biscayne, a retail center 15 miles north of Miami in Miami-Dade County. Regency Centers is investing $23 million in the redevelopment of three retail buildings totaling more than 28,000 square feet. The company plans to deliver the first space to merchants for buildout in Q4 2024. Outside of Regency, the Avenida Biscayne project includes teams from API+ (architecture), Kimley-Horn (engineering), and Oak Construction. The construction plan prioritizes flood mitigation, wind resistance and heat reduction.

Avenida Biscayne will feature retail space, including three restaurant spaces with patios for covered outdoor dining. It will build spaces ranging from 2,024 to 7,350 square feet.

The project is located at the southeast corner of Biscayne Blvd. and William Lehman Causeway. Avenida Biscayne is slated to open in 2025.