AI data center bans surge past 500 nationwide as local US politicians begin blocking new developments — growing public outrage and bipartisan pushback threaten big tech expansion plans

The number of local bans on new data center developments jumped to over 500 in July, according to recent data. Local politicians in the United States are refusing to approve new data center construction in greater numbers, posing a threat to the expansion required by AI firms to provide the capacity needed to power the new technology. The analysis, conducted by The Information from legal documents and local news reports, shows that this isn’t a partisan issue.

Republican- and Democrat-run states, towns and counties have all begun to block new data center projects, with Texas and New York both prominent entries from both sides of the political divide, and with the majority of the bans appearing in the Midwest and South, according to the report.

Politicians aren’t doing this out of spite, but in response to the growing concern from residents over the impact on communities. Among them are the impact of noise on local residents, as well as the disproportionate impact on public services, including on water and electricity supplies. It follows Texas Governor Greg Abbott’s moratorium on data center approvals in recent weeks until an extensive audit has been conducted of companies looking to hook their new centers up to the Texan power grid.

The Information’s analysis shows that the bans are growing fast, jumping from 300 in late June to over 500 in July. The ban in Texas is particularly noteworthy due to the state becoming a prominent home for AI data centers. Despite Governor Abbott’s pause, Amazon is still hoping to build a new gas power plant in Pecos County, Texas, to power a data center at the same location. That location is already believed to likely become the single biggest source of environmental pollution in the U.S. once it’s operational.

The rapid growth of new data centers in Texas and nearby states has likely fueled those concerns from residents. The Information reports that most of the bans are in the Midwest and South, with more than 400 restrictions now in place, with nearly three-quarters of the moratoriums approved in July occurring in southern states like Georgia and Florida. Florida, in particular, is quickly stopping new developments, with 14 out of 23 current active restrictions in that state being approved in July, and 15 more under consideration.

Small and big, rural and urban states alike are all seeing political capital used on preventing AI data center expansion. Kathy Hochul, Democrat Governor of New York, recently signed an executive order that paused approval for all data centers consuming 50 megawatts of energy or more. Massachusetts and Nebraska halted tax breaks for developers, while in Colorado, 19 bans are now in place around Denver, and more elsewhere in the state, due to concerns specifically around the impact on the environment and on water usage. In Nashville, Tennessee, a 23-acre data center development next to a zoo, expected to cost up to $700 million, is also facing local and political resistance.

It’s no surprise to see politicians begin to wake up to the public malaise against AI development. Over 70% of Americans are reportedly against more AI data centers, and direct resistance against them is growing, with at least 37 people arrested so far this year for protesting against new developments.