U.S. Municipalities Accelerate Bans on Data Center Construction Amid AI Expansion

In June, Monterey Park, California, approved a ban on new data-center projects after an 86 %–14 % vote. The city joins earlier Georgian bans in Palmetto, Fayetteville and Atlanta. Across the nation, more than 60 active moratoriums are tracked by Interconnected Capital, including a one-year pause in Denver, a year-long moratorium in Oklahoma City, six-month pauses in several Illinois municipalities, and a three-year moratorium in Huron County, Michigan. New Jersey towns—Union, Monroe, Phillipsburg, Millville, Harrison and Pemberton—are poised to introduce similar bans.

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The surge in artificial-intelligence applications has spurred rapid data-center construction, which federal officials have labeled “critical infrastructure” for maintaining U.S. competitiveness. The Trump administration previously asserted that “faster build-out is essential to staying ahead of rivals such as China.” Yet the same facilities demand substantial water and electricity, prompting local resistance.

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• Monterey Park City Council – enacted the ban following the public vote.

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• Interconnected Capital – maintains the national moratorium tracker.

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• Heatmap Pro – renewable-energy advocacy group that surveyed public opinion.

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• Florida Attorney General James Uthmeier – filed a statewide lawsuit against OpenAI, linking AI software concerns to the physical data-center footprint.

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• State regulators – several states now require data-center operators to disclose water and electricity usage or secure long-term power contracts.

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A cited report estimates U.S. data centers consume roughly 450 million gallons of water daily (?160 billion gallons annually). Researchers at the University of California, Riverside, calculated that generating a 100-word AI response uses about one bottle of water. The U.S. Energy Information Administration reported residential electricity price spikes of 15 % in Utah and 14 % in Illinois as of June. Heatmap Pro’s poll of 4,118 registered voters (±1.6 % margin) found 71 % would resist nearby data-center projects, with 55 % strongly opposed.

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Florida AG Uthmeier’s complaint characterizes ChatGPT as creating a “great danger of addiction, cognitive decline, suicide, violence, and related harms.” Heatmap Pro emphasizes the sharp rise in opposition, noting the shift from a near-even split nine months earlier to a 71 % majority against. The U.S. Energy Information Administration attributes recent electricity price increases to heightened demand from data-center expansion. Several state legislatures have introduced guardrails compelling facilities to report utility usage and negotiate fixed-price power agreements.

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Local residents cite water scarcity—especially as the nation experiences its driest start since 1910—and rising electricity costs as primary concerns. Reports also link data-center construction to higher mortgage rates in affected neighborhoods. Environmental advocates argue that large-scale cooling systems exacerbate drought conditions and strain municipal utilities.

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Monterey Park’s vote was described as a “landslide” with 86 % in favor. Denver’s city council unanimously approved a one-year moratorium, while Oklahoma City set a moratorium through year-end. These actions reflect a growing pattern of municipal-level regulation.

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Estimates of water consumption vary between “almost 450 million gallons daily” and the university-based “one bottle per 100-word response,” indicating a need for standardized measurement. The total number of active bans versus moratoriums remains approximate, as the Interconnected Capital tracker lists “more than 60” but does not differentiate status. Data on the precise impact of data-center projects on mortgage rates is anecdotal.

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• “great danger of addiction, cognitive decline, suicide, violence, and related harms.” — Attorney General James Uthmeier, Florida AG

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• “What to Know About the Effort to Halt the Construction of Data Centers Supporting AI Companies Opposition to AI is no longer confined to software regulation—it has expanded to the physical infrastructure powering the industry.” — Newsweek analysis

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• “The suit cites incidents where ChatGPT was allegedly used in planning violent acts, including a mass shooting at Florida State University, though OpenAI says the chatbot only provided publicly available information and did not encourage illegal behavior.” — Florida lawsuit filing

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Municipalities in New Jersey are expected to vote on bans in the coming weeks. State legislatures are drafting utility-reporting requirements for data-center operators. Concurrently, Florida’s lawsuit against OpenAI proceeds, potentially setting precedent for linking AI software liability to the environmental impact of supporting infrastructure. Continued public polling suggests opposition will remain a decisive factor in future zoning and development decisions.

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