Data center regulations tighten in US and Australia amid public backlash

Governments and communities in the United States and Australia are implementing stricter regulations on data center development in response to growing public concern over energy use, water consumption, and lack of transparency.

In the United States, particularly in Virginia, officials are moving to ban nondisclosure agreements (NDAs) for large-scale projects and introducing clean energy mandates. This political backlash is driven by community distrust regarding secretive land deals and the environmental impact of AI-driven infrastructure. Residents have expressed concerns over noise, air quality, and the strain on local power grids.

In Victoria, Australia, new rules require data centers to source their own renewable energy and prohibit the use of drinking water for cooling systems. The state is also implementing a 150-meter buffer zone between new facilities and residential areas, including schools and childcare centers. These measures aim to ensure that industrial water demand does not compromise local supplies.