The AI boom just hit a wall — these states are considering banning all new data centers
Texas joins the list of states that are looking to pump the brakes on data centers
It’s become a part of everyday life to wake up to a news story about AI data centers being built somewhere in the U.S. It’s also become equally common to be treated to threads full of negative feedback from randoms and the people living in those states once they learn about them.
The speedy development of data centers has been tied to plenty of unfortunate outcomes thus far—their expansion across the DMV (Washington, D.C., Maryland and Virginia) and Georgia is reportedly driving people from their homes as the spaces they occupy are being considered as fertile ground for new data centers. The growing opposition to them is due in large part to their massive consumption of water and electricity they consume, which then raises the utility bills for nearby residents.
Add on the constant noise pollution from continuous cooling systems, air emissions from backup generators and the conversion of natural green spaces (such as farms) into massive industrial warehouses and you have a long list of valid complaints against continued data center development.
While states such as Ohio, Illinois and Arizona stand out as growing hubs for the constant advancement of new data centers, there’s also a bunch of other states that are going in the opposite direction. Here are the ones that are considering banning them altogether.
Texas is joining the list of other states that are considering blocking new AI data centers
Most recently, The Texas Tribune reported that Texas Gov. Greg Abbott announced a moratorium on all data center approvals through the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT).
That is, until the agencies have completed an audit of data centers seeking approval to connect to Texas’s electric grid.
In a written statement to both agencies, Abbott had this to say: “Our top priority is to protect Texans’ safety and quality of life. Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first.”
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Alongside Texas are the following states that have introduced moratoriums, continued them or passed legislation on the rapid development of data centers (this information comes courtesy of The National Conference of State Legislatures:
- Delaware introduced a moratorium “on permits for data centers over 100 MW until January 2027.”
- Georgia introduced a moratorium that “forbids local governments from permitting data centers until December 2028.”
- Michigan introduced a moratorium that says “local governments and the public service commission may not permit or approve new data centers until April 2027.”
- New York passed legislation that enacted a “one-year moratorium on data centers over 20 MW.”
- Pennsylvania introduced a “three-year moratorium on new data centers, paired with impact studies; or empower municipalities to prohibit data centers.”
- South Carolina introduced a moratorium that “forbids local approval of data centers until the Legislature adopts a “comprehensive oversight” framework.”
- Vermont introduced a “moratorium on data centers until 2030, requires impact study.”
- Virginia continued a moratorium that “prohibits final approval of new data centers until all interconnection requests are fulfilled, or until July 2028.”
It’s also worth mentioning the states where moratorium bills against new data centers have failed in their processes of getting passed:
- Maryland
- Minnesota
- New Hampshire
- Oklahoma
- South Dakota
- Wisconsin
Bottom line
The stats laid out by Electric Choice in connection to data centers are pretty alarming: 700+ data centers are currently under construction across 38 states, 4,500+ active facilities are littered across all 50 states while consuming 4.4% of total U.S. electricity, and the total natural energy consumption is projected to double by 2028, driven primarily by AI workloads.
Even though there seems to be a bigger push towards producing even more data centers, it’s refreshing to see some states rising against the AI tide by enacting temporary pauses on their fast-paced development.
If you’re looking for information on whether data centers have been built or are planning to be built in your home state, it’s definitely worth checking out sites such as Cleanview and Track Data Centers.
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Elton Jones covers AI for Tom’s Guide, and tests all the latest models, from ChatGPT to Gemini to Claude to see which tools perform best — and how they can improve everyday productivity.
He is also an experienced tech writer who has covered video games, mobile devices, headsets, and now artificial intelligence for over a decade. Since 2011, his work has appeared in publications including The Christian Post, Complex, TechRadar, Heavy, and ONE37pm, with a focus on clear, practical analysis.
Today, Elton focuses on making AI more accessible by breaking down complex topics into useful, easy-to-understand insights for a wide range of readers.
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