Growing Opposition to Data Center Expansion: Calls for a National Moratorium

The rapid expansion of data centers across the United States has ignited significant opposition from local communities, uniting residents from diverse political backgrounds against the interests of major tech companies. This grassroots movement has emerged as a response to the environmental and economic impacts associated with the construction of massive "hyperscale" data centers, which are often powered by fossil fuel plants. In December 2025, over 230 environmental and community organizations, led by Food & Water Watch, sent a letter to Congress advocating for a national moratorium on new data center construction, citing the urgent need to address the escalating energy demands and environmental degradation linked to these facilities.

TruthOut

The construction of data centers is projected to triple energy demand between 2023 and 2028, with estimates suggesting that AI technologies could consume as much electricity as 28 million U.S. households. This surge in energy consumption has already led to a 250 percent increase in electricity prices in regions with existing data centers over the past five years. Additionally, the water required for cooling these facilities is substantial, with projections indicating that data centers will need billions of gallons of clean water—enough to serve over 18 million households by 2028. This is particularly alarming for communities in the Southwest, where water scarcity is a growing concern.

TruthOut

In response to these challenges, lawmakers across all 50 states have considered numerous bills related to data center development, enacting over 40 in 21 states. Some cities and towns have taken more direct action, with at least 14 states implementing local moratoriums on data center construction. However, many projects are being negotiated behind closed doors, often involving non-disclosure agreements that prevent public scrutiny of their resource usage and financial implications. This lack of transparency has further fueled community outrage.

TruthOut

Prominent political figures, including Senator Bernie Sanders, have voiced strong criticism of the tech industry's approach to data center expansion. Sanders has argued that the rapid buildout is primarily driven by the interests of wealthy tech moguls, such as Elon Musk and Mark Zuckerberg, who prioritize profit over the well-being of working-class communities. He emphasized the need for a moratorium to allow policymakers to catch up with the pace of technological development and its societal impacts.

TruthOut

While there is widespread opposition to data center expansion, the extent of its economic benefits remains a point of contention. Critics argue that the promised economic advantages often fail to materialize for local communities, leaving them to bear the costs of increased utility bills and environmental degradation. As local coalitions continue to mobilize against these developments, the call for a national moratorium reflects a growing recognition of the need for a more equitable approach to technological advancement.

TruthOut

• “This expansion is rapidly increasing demand for energy, driving more fossil fuel pollution, straining water resources and raising electricity prices across the country,” — Jim Walsh, Policy Director, Food & Water Watch

TruthOut

• “Do you think they are staying up nights worrying about working people and how this technology will impact those people?” — Bernie Sanders, U.S. Senator

TruthOut

The movement against data center expansion highlights the urgent need for a balanced approach that considers both technological progress and the rights and resources of local communities.

TruthOut