Key facts
- New York is the first U.S. state to enact a full moratorium on data center construction.
- Amsterdam has barred new data centers or expansions until at least 2030.
- Ireland now requires new data center connections to provide their own on-site power generation.
- Australia will establish an "Office of AI" to set standards for data centers.
- Monterey Park, California, is the first U.S. city to permanently ban data centers via ballot.
Governments, regulators, and cities worldwide are increasingly implementing restrictions or outright bans on new data center construction. This trend is driven by mounting concerns over the significant strain these facilities place on electricity grids, water supplies, land availability, and local communities, particularly in the context of the rapidly expanding AI industry.
In New York, Governor Kathy Hochul has enacted a one-year moratorium on data centers consuming 50 megawatts or more of power, making it the first U.S. state to implement such a broad freeze. During this period, the state's Department of Environmental Conservation will not issue new discretionary permits as officials work to develop environmental impact assessment standards for data centers.
Maine's Governor Janet Mills vetoed bipartisan legislation that would have imposed an 18-month moratorium on new data centers exceeding 20 MW. While supporting the principle of a moratorium, Mills objected to the bill's lack of an exception for a specific project. In California, Monterey Park residents voted to permanently ban data centers, becoming the first U.S. city to do so through a ballot measure following public opposition to a planned facility.
Amsterdam initially imposed a one-year moratorium in 2019 and has since barred new data centers or expansions until at least 2030. The Dutch national government's 2022 ban restricts large facilities to two designated locations, although Microsoft secured approval in January 2026 for a project split into 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 grid strain. This restriction was lifted in December 2025, with new connections now required to provide their own on-site power generation. Looking ahead, Australia's Prime Minister Anthony Albanese announced plans for a government AI office to establish common standards for AI development, including rules for large data centers concerning their location, power, and water usage, with legislation expected early next year.