Map Shows Where Data Center Bans Could Strike Next

A Californian city has passed a ban on data center development, and many more U.S. cities and counties seem poised to introduce similar laws amid a growing national backlash against the infrastructure, which local communities say could strain vital resources.

Monterey Park has moved to ban the development of new data centers in the city following a landslide vote, with 86 percent of constituents voting in favor of the ban and 14 percent voting against, according to local news outlets. The city is among the first to ban data center development, as Georgian cities such as Palmetto, Fayetteville and Atlanta approved bans earlier this year.

Large data complexes have seen increased development in recent years, matching the boom of artificial intelligence, and lawmakers and tech titans have treated them as critical infrastructure in the U.S.’s race to dominate AI. The Trump administration has even said that faster build-out is essential to staying ahead of rivals such as China.

However, concerns about the amount of water and electricity these centers require-and how this could strain supplies and increase costs for local communities-have made data center development somewhat divisive.

U.S. Cities That Could Implement Bans

A number of municipalities in New Jersey are poised to introduce bans, according to the news outlet My Central Jersey, including Union Township, Monroe Township, Phillipsburg, Millville, Harrison and Pemberton.

There are also more than 60 active data center moratoriums in the U.S., according to a tracker run by the technology hedge fund Interconnected Capital. A data center moratorium is a temporary pause imposed on the construction or approval of new data centers, usually to allow governments or communities to assess the potential effects of development.

In the past month or so, Denver unanimously approved a one-year moratorium on data centers, while Oklahoma City approved a moratorium set to remain in effect until the end of this year. Tulsa, Oklahoma, also approved a pause on any new construction.

In Illinois, a number of cities recently approved six-month moratoriums, while Huron County in Michigan approved a three-year moratorium at the end of May-joining a number of other communities in the state that have halted data center construction.

Why Data Center Bans Are Becoming More Popular

One of the largest concerns around data center development is the amount of water the complexes need to function. As the powerful computer systems inside these centers generate enormous amounts of heat, a significant amount of water is used daily for cooling purposes.

One report estimated that U.S. data centers collectively consume almost 450 million gallons of water daily and more than 160 billion gallons annually, while researchers at the University of California, Riverside, estimated that generating a 100-word AI response could consume about one bottle of water.

As the U.S. faces its driest start to the year since 1910, with a large portion of the country experiencing drought conditions, concerns around water supply and how much data centers consume have amplified. A number of centers under construction are in drought-affected regions.

With data center development expanding nationwide, Americans are also seeing an increase in residential electricity prices. For example, in Utah and Illinois, costs have jumped by 15 percent and 14 percent, respectively, as of June, according to the U.S. Energy Information Administration. There have also been reports of data center development affecting mortgage rates.

As a result of these concerns, a number of states have introduced guardrails to protect constituents, such as forcing centers to report electricity and water usage or enter into long-term electricity contacts with suppliers to protect taxpayers.

However, as more cities and counties implement data center moratoriums and bans, it seems such guardrails may not go far enough for local communities, many of which see the development of data centers as a serious threat.

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This story was originally published June 4, 2026 at 11:21 AM.