Key facts
- Governments and cities worldwide are restricting new data center construction due to AI boom concerns.
- New York state enacted a one-year moratorium on data centers using 50 MW or more of power.
- Amsterdam has barred new data centers or expansions until at least 2030.
- Denmark is proposing to give new data centers the lowest priority for power grid connections.
- Australia plans legislation to manage data center standards, including power and water use.
Governments and cities worldwide are increasingly implementing measures to restrict or ban new data center construction, driven by growing concerns over the significant electricity and water demands, land scarcity, and the overall burden these facilities place on local communities. The rapid expansion of artificial intelligence infrastructure is a primary catalyst for these regulatory actions.
In the United States, New York Governor Kathy Hochul has enacted a one-year moratorium on data centers requiring 50 megawatts or more of power, making it the first state to implement such a full freeze. During this period, the state's Department of Environmental Conservation will not issue new discretionary permits as officials develop standards for assessing environmental impacts. Meanwhile, Maine Governor Janet Mills vetoed bipartisan legislation that would have imposed an 18-month moratorium on new data centers exceeding 20 MW, citing an objection to the bill's lack of an exception for a specific project. In California, residents of Monterey Park voted to permanently ban data centers, becoming the first U.S. city to do so via ballot following public opposition to a planned facility.
Internationally, Amsterdam has taken significant steps, initially imposing a one-year moratorium in 2019 and subsequently barring new data centers or expansions until at least 2030. The Dutch government's 2022 hyperscale ban further restricts large facilities to two designated national locations, although Microsoft secured approval for a project split across three towers, each individually below the size threshold.
Ireland's grid operator had effectively blocked new data center connections around Dublin from 2021 due to strain on the grid, a freeze that concluded in December 2025. New connections are now required to provide their own on-site power generation. In Australia, Prime Minister Anthony Albanese announced plans for a government office to manage AI standards, including rules for large data centers concerning their location, power, and water usage, with legislation expected early next year. Denmark's government has introduced a draft bill to parliament that would grant new data centers the lowest priority for power grid connections, reflecting growing capacity shortages and prioritizing other sectors like households and healthcare.