Amid escalating concerns over electricity costs and environmental impacts, several states are considering halting the development of data centers. At least 11 states, including Georgia, Maryland, and New York, have proposed legislation to temporarily ban these facilities, according to Good Jobs First, a watchdog group focused on economic development incentives. Some of these measures call for indefinite bans, while others propose multi-year moratoriums, as seen in Vermont’s plan to pause data center projects until July 2030.
In addition to moratoriums, states like New Hampshire and Oklahoma are mandating impact studies on local economies and the environment. Pennsylvania and Minnesota lawmakers have also expressed intentions to propose similar bans. Several bills, however, have stalled, with South Dakota’s proposal being tabled by the Senate State Affairs Committee after failing to pass. Michigan’s Governor Gretchen Whitmer has openly opposed halting data center developments.
Despite no statewide moratoriums being enacted, some cities and counties have independently banned new data center projects. St. Charles, Missouri, and three counties in Indiana, including Fulton County, have issued temporary bans. DeKalb County, Georgia, has postponed new projects until June 2026. However, some local moratorium attempts have faced opposition, as seen in Hood County, Texas, where a proposal was rejected following a state senator’s legal threat.
Beyond temporary halts, state and local leaders are advocating for data center regulations to protect consumers from rising utility bills and to reconsider the financial implications of tax breaks for these facilities.
