Story perspectives

State moves to curb data centers amid AI demand

9/10/2026

Center

Data Centers Boom

Data center projects are rapidly expanding across the United States as AI demand grows, sparking community opposition and political scrutiny.
Avison Young reported U.S. data-center firms bought $6 billion of land in the first half of 2026, a 79 % increase from the prior year.
California enacted legislation regulating data-center energy consumption.
Arizona, Georgia, Illinois, Michigan, Minnesota, New Jersey, Ohio, Texas, Virginia and Washington have tax-break limiting bills.

Left

Governors Curb

Data center projects are expanding to meet AI demand, sparking growing community opposition and political scrutiny.
Grassroots anger over power bills, water use and pollution is prompting state leaders—including Republican Gov. Greg Abbott and Democratic governors—to curb data-center growth.
Gov. Josh Shapiro of Pennsylvania and Gov. J.B. Pritzker of Illinois have limited data-center construction.
Rep. Ro Khanna of California, supportive, now calls data centers water-intensive and harmful to communities.

Blindspot

Texas Governor Greg Abbott imposed a statewide moratorium on new data-center construction until an audit evaluates their impact on the power grid, according to the left-leaning source.
Within this story's sources, this angle appears mainly in Left-leaning coverage and receives less attention in Center-leaning coverage.

History

Historical Context

The Telecommunications Act of 1996, signed by President Bill Clinton on February 8, amended the 1934 Communications Act that had created the FCC. By loosening cross-ownership rules, it spurred massive infrastructure spending, and by 2001 four incumbents controlled about 85 % of the U.S. telephone network. That deregulation precedent informs today’s AI-driven data-center boom and state-level limits such as California’s 2001 energy-efficiency law.

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Data Centers Boom

Data center projects are rapidly expanding across the United States as AI demand grows, sparking community opposition and political scrutiny.
Avison Young reported U.S. data-center firms bought $6 billion of land in the first half of 2026, a 79 % increase from the prior year.
California enacted legislation regulating data-center energy consumption.
Arizona, Georgia, Illinois, Michigan, Minnesota, New Jersey, Ohio, Texas, Virginia and Washington have tax-break limiting bills.

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