Local Data Center Regulations Gain Ground as State Bills Falter

Local governments across multiple states have passed ordinances imposing temporary moratoriums on new data center construction. Officials in New Orleans and Chandler, Arizona, among other localities, approved the pauses after hearing persistent concerns from residents about effects on energy use, water resources and communities. These measures have taken hold even as similar proposals at the state level have not advanced. Fourteen bills seeking statewide moratoriums have been introduced in 11 states this year, with proposed durations ranging from three months to four years. None of the measures has passed its originating chamber. In South Dakota, lawmakers considered two such bills but instead approved legislation that bars the state from restricting local authority to regulate or prohibit data centers. Local moratoriums have succeeded in part because they reflect narrower, citizen-driven efforts. Polling indicates residents often support data center projects in general but oppose those built within three miles of their homes. Dozens of localities have adopted temporary pauses, and protests along with project-specific zoning denials have added further disruption to development plans.