Key facts
- Several U.S. states are concerned about the rapid expansion of data centers due to rising utility bills and energy demand.
- Data centers are projected to be a major consumer of U.S. power, with demand expected to reach 134.4 GW by 2030.
- Globally, data centers are expected to consume twice as much power and water by 2030.
- Monterey Park, California, enacted the first permanent U.S. city ban on data center development.
- New York's legislature approved a one-year moratorium on large data centers.
- At least 14 states are considering legislation to halt new data center construction.
Several U.S. states are increasingly scrutinizing the rapid expansion of data centers, driven by growing consumer concerns over escalating utility bills and the significant energy and water demands of these facilities. Data centers are projected to become major consumers of power, with global consumption expected to double by 2030, and artificial intelligence contributing substantially to this demand.
According to a UN report, global data centers consumed 448 terawatt-hours of electricity in 2025, with AI accounting for one-fifth. They also consumed 4.5 trillion liters of water and emitted 189 million tons of CO2. In the U.S., power demand for data centers rose to 61.8 GW in 2025 and is projected to reach 134.4 GW by 2030. This escalating demand has led to significant public opposition, with a Gallup poll indicating 70% of Americans oppose data center development in their communities.
In response, at least 14 states are considering legislation to temporarily halt new data center construction, despite many states offering tax incentives. Maine's governor vetoed a proposed ban, but similar legislation is pending in several other states, and North Carolina has proposed stricter rules. Some municipalities have already moved forward with bans. Monterey Park, California, enacted the first permanent city-wide ban via a ballot initiative, with nearly 90% of residents voting in favor due to concerns over utility costs and resource drain.
New York is close to enacting a one-year moratorium on large data centers after its legislature approved the measure. State Senator Kristen Gonzalez, a bill co-author, emphasized the need for regulation, stating, "This is one of the first times that we’re really drawing a line in the sand and saying that as a state legislature, we have the responsibility to make sure that New Yorkers are in the driver’s seat." The moratorium targets hyperscale facilities, and similar legislative actions are anticipated in other states as public pressure mounts over the environmental and energy impacts of data center growth.