Governments worldwide move to curb data centre expansion
Authorities globally are freezing, restricting, or banning new data centre construction over concerns about power, water, and community impact.
A growing number of governments and municipalities are taking steps to freeze, restrict, or outright ban new data centre construction, reflecting mounting concerns over electricity costs, water supply, land use, and the strain on local communities from the infrastructure powering the artificial intelligence boom.
In the United States, Pennsylvania Governor Josh Shapiro has signed an executive order requiring companies setting up AI data centres to meet environmental and transparency safeguards and secure local community approval. The order, effective immediately, removes all data centres from the state's Fast Track permit program and bars agencies under the governor's jurisdiction from signing non-disclosure agreements with developers.
New York has become the first US state to enact a full moratorium, with Governor Kathy Hochul imposing a one-year construction freeze on data centres using 50 megawatts or more of power. During this period, the state's Department of Environmental Conservation will not issue new discretionary permits while officials develop standards to assess environmental impact.
In Maine, Governor Janet Mills vetoed bipartisan legislation that would have enacted an 18-month moratorium on new data centres using more than 20 MW of power. Mills said she supported a moratorium in principle but objected to the bill's failure to exempt a specific project in the Town of Jay.
Monterey Park, California, became the first US city to permanently ban data centres via a public vote in June 2026, following backlash over a planned facility.
Internationally, Amsterdam imposed a one-year moratorium on new data centre developments in 2019 and, in April 2025, barred new centres or expansions until at least 2030. The Dutch government's 2022 hyperscale ban restricts large facilities to two designated locations, though Microsoft won approval in January 2026 for a project split into three towers, each individually below the size threshold.
Ireland's grid operator effectively blocked new data centre connections around Dublin from 2021, a freeze that ended in December 2025 with new connections now required to bring their own on-site power generation.
In Australia, Prime Minister Anthony Albanese has announced plans to establish an "Office of AI" to manage AI standards, including rules for large data centres covering location, power, and water use, with legislation due early next year. The country currently relies on privacy and consumer protection laws and a voluntary AI ethics framework.
Denmark has introduced a draft bill that would give new data centres the lowest priority for power grid connections amid capacity shortages. The proposed law, backed by a cross-party agreement representing 80% of parliament, would prioritise households, healthcare, industry, transport, and renewable energy projects instead.