U. S. States Push Back Against AI Data Center Expansion

At Least 12 States Consider Moratoriums on Large Data Centers

At least 12 U. S. states are considering legislation to impose a moratorium on the construction of large data centers, citing concerns over energy consumption and resource usage.

The move gained attention this week after Maine Governor Janet Mills vetoed a bill that would have made the state the first to officially halt such projects.

The goal of these laws is to freeze approvals for installations that require more than 20 megawatts of power. The proposed timeline in many states, such as Maine (October 2027), would give state councils time to assess three critical areas:

• Grid capacity: whether the current infrastructure can support the demand without causing blackouts.
• Tariffs: whether the cost of energy for the average citizen will increase to subsidize big tech companies.
• Environment: the real impact on water consumption (for cooling) and air quality.

States with ongoing legislation to limit or audit data center expansion include:

• Georgia (HB 1012): prohibits new construction licenses until March 2027.
• Maryland (HB 120): conditions new projects on approval of legislation on on-site energy generation (including nuclear or natural gas).
• Michigan (Resolution 240): seeks a temporary pause in all state tax incentives for the sector.
• New Hampshire (HB 1265): proposes a one-year total ban to study environmental impacts.
• Minnesota (SF 4298): blocks licenses until a report on development scenarios is delivered to the Public Services Commission.
• New York (S9144): imposes a state moratorium and requires a plan to avoid passing energy costs to residential electricity bills.
• Oklahoma (SB 1488): suspends constructions until November 2029 to study the impact on water supply, public service tariffs, and property values.
• South Carolina (H 5286): prevents governments from granting licenses or incentives until January 2028.
• South Dakota (SB 232 / HB 1301): establishes a one-year moratorium focused on ‘hyper-scalable’ data centers.
• Vermont (S 205): creates a temporary suspension until July 2030 to create a robust regulatory framework.
• Virginia (HB 1515): blocks rezonings until specific network interconnection conditions are met.
• Wisconsin (LRB-6377/1): prohibits operations until rules are created to prevent energy and water cost transfers to the end consumer.

Many of these projects are seen as a test of resistance against Washington’s pressure to win the technological race against Beijing. While the federal government encourages AI infrastructure, local communities fear that the environmental and financial cost of this expansion will fall on residents.

In states like Michigan and South Dakota, the pause also aims to reevaluate the billion-dollar tax incentives given to technology companies, questioning whether job creation justifies the strain on basic infrastructure.

Classification: Inteligência Artificial, Energia, Política

Keywords: AI, Data Centers, Energy Consumption, Moratorium