US cities explore regulations and moratoriums for data center growth

Local governments in Texas and California are taking steps to regulate or pause the rapid expansion of data centers due to concerns over resource consumption and community impact.

In San Jose, officials have launched a community engagement process to establish development standards for data centers. The initiative, led by the city manager's team, aims to balance economic growth with environmental protections. Residents and advocates have called for robust safeguards to prevent chemical contamination of drinking water and have suggested a moratorium on new projects until standards are finalized. The city expects to present proposed standards to the City Council in December.

In San Antonio, three City Council members have requested a meeting to discuss a potential moratorium on new data center construction. The proposed pause would cover various application types and permits, citing fears regarding increased electricity demand, water usage, and local pollution. This local movement follows actions at the state level in Texas, where Governor Greg Abbott has paused approvals for new data centers and ordered audits of facilities waiting to connect to the state's power grid.