A growing number of governments, regulators and cities around the world are moving to freeze, restrict or ban new data center construction, as concerns mount over electricity costs, strained water supplies, land scarcity and the burden on local communities from the infrastructure powering the AI boom.
Below are some key examples:
U.S.
PENNSYLVANIA
Governor Josh Shapiro signed an executive order that would require companies setting up AI data centers in the state to meet environmental and transparency safeguards and secure local community approval for the projects.
The order, effective immediately, removes all data centers from the state’s Fast Track permit program, and bars any office or agency under Shapiro’s jurisdiction from signing non-disclosure agreements with data center developers.
TEXAS
Governor Greg Abbott ordered a pause on approvals of new data center projects through the state’s grid interconnection process, citing concerns that a surge in electricity demand could threaten reliability at a time when opposition to the projects is growing.
Under Abbott’s directive, developers will be required to provide more information on power demand, water use, tax incentives, ownership structures and efforts to mitigate local impacts.
NEW YORK STATE
Governor Kathy Hochul imposed a one-year construction moratorium on data centers using 50 megawatts or more of power, making New York the first U.S. state to enact a full moratorium.
During the freeze, the state’s Department of Environmental Conservation will not issue new discretionary permits while officials develop standards to assess the environmental impact of data centers.
MAINE (vetoed)
Governor Janet Mills vetoed bipartisan legislation that would have enacted an 18-month moratorium on new data centers using more than 20 MW of power.
Mills said she supported a moratorium in principle but objected to the bill’s failure to carve out an exception for a specific project in the Town of Jay.
MONTEREY PARK, CALIFORNIA,
Residents voted to permanently ban data centers in Monterey Park in June 2026, becoming the first U.S. city to do so at the ballot box, following public backlash over a planned facility.
AMSTERDAM, NETHERLANDS
The Dutch capital imposed a one-year moratorium on new data center developments in 2019. In April 2025, it barred new data centers or expansions in the municipality until at least 2030.
Separately, the Dutch government’s 2022 hyperscale ban restricts large facilities to two designated locations nationally, though Microsoft won approval in January 2026 for a project split into three towers, each individually below the size threshold.
DUBLIN, IRELAND (restriction now lifted)
Ireland’s grid operator effectively blocked new data center connections around Dublin from 2021 after warnings that the facilities were straining the grid.
The freeze ended in December 2025, with new connections now required to bring their own on-site power generation.
AUSTRALIA (planned legislation)
Prime Minister Anthony Albanese said Australia would establish a government office called the “Office of AI” to manage the development of AI standards, including rules for large data centers covering their location, power and water use, with legislation due early next year.
Australia does not currently have specific AI laws, relying instead on a range of privacy and consumer protection laws and a voluntary AI ethics framework.
DENMARK
Denmark’s government has introduced a draft bill to its parliament that would give new data centers the lowest priority for power grid connections amid growing capacity shortages.
The proposed law, backed by a broad cross-party agreement representing 80% of the parliament, would prioritize households, healthcare, industry, transport and renewable energy projects instead.
Denmark’s power grid has come under strain from a surge in electricity demand and connection requests, including from large data centers.
(Reporting by Hugo Lhomedet and Cian Muenster in Gdansk, Juby Babu in Mexico City; Editing by Matt Scuffham, Milla Nissi-Prussak and Shinjini Ganguli)
