Concerns over rising electricity costs and the environmental impact of data centers are prompting a growing number of states to consider putting the brakes on new development.
Lawmakers in at least eleven states — including South Dakota, Georgia, Maryland, New York, and Wisconsin — have introduced bills this session that would temporarily ban new data centers. Some proposals call for multi‑year pauses, while others, like a bill in Vermont, would halt new projects through 2030. Several states, including New Hampshire and Oklahoma, are also pushing for studies on how data centers affect local economies, energy use, and the environment.
More states may join the list soon. Lawmakers in Pennsylvania and Minnesota have announced plans to introduce similar moratoriums. But some efforts have already stalled. In South Dakota, a proposed ban was tabled last month, and Michigan Governor Gretchen Whitmer has said she opposes blocking data center development.
While no statewide moratorium has passed, local governments are taking action. Cities and counties in Missouri, Indiana, and Georgia have enacted temporary bans on new data center construction. Others, like Hood County, Texas, have backed away from the idea after questions about their legal authority.
Beyond outright bans, state and local officials are exploring new regulations aimed at protecting consumers from rising utility bills and limiting the financial impact of tax incentives tied to data center projects.
