US data center boom triggers moratoriums and regulatory action

New York Governor Kathy Hochul imposed a one‑year moratorium on large data‑center projects and announced plans to ban state and local tax breaks for hyperscale facilities. Maryland’s Montgomery County followed with a six‑month moratorium. Several other states are considering similar limits as local communities push back against rising electricity and water use, noise, and land‑use concerns.

Congressional action is also emerging: Rep. Terri Sewell has cosponsored the AI Data Center Moratorium Act, which would pause new AI‑related data‑center construction until federal guardrails are established. Meanwhile, power utilities are invoking eminent‑domain authority to acquire land for transmission lines needed to serve expanding facilities.

Grassroots opposition has grown nationwide, with organized protests in 42 states and local opposition in Virginia, New Jersey, and other jurisdictions. Protesters cite the strain on power grids, water resources, and property values, demanding greater community input before further expansion.

The federal Department of Energy is offering loans, grants, and technical assistance to help modernize the grid and meet clean‑energy goals amid the sector’s rapid growth.