Data center expansion faces scrutiny over electricity costs and local bans

A new map from the Consumer Choice Center reveals that more than half of the 1,715 mapped data centers in the United States are concentrated in just five states: Virginia, Texas, Oregon, California, and Ohio. Despite public debate regarding the impact of these facilities on utility rates, data from the U.S. Energy Information Administration suggests that three of these five states—Virginia, Texas, and Oregon—maintain household electricity rates below the national average.

In California, which ranks third in data center density with 366 facilities, local governments are taking direct action to limit development. Despite recent state laws aimed at increasing transparency, at least 26 resolutions, moratoriums, or bans have been proposed or passed since June. Cities such as Oakland and San Francisco have approved moratoriums, while Los Angeles County officials have faced significant public pressure regarding bans on large-scale hyperscale facilities. In Santa Clara, officials are pursuing stricter regulations concerning water and air pollution related to data center operations.

The U.S. Department of Energy estimates that data centers accounted for 4.4% of U.S. electricity usage in 2023, a figure projected to rise to between 6.7% and 12% by 2028.