The 300-Plus Bans and Moratoriums Threatening the U.S. Data Center Boom

2026-06-24 · Source: The Information · Field: Technology & Digital — Cloud Computing & IT Infrastructure, Public Policy & Governance · Depth: Fundamental Awareness, quick

Summary

The Information has identified over 300 temporary and permanent bans on data center development enacted by U.S. state and local governments since 2023, with more than 75 additional bans currently under consideration. This surge in restrictions, which includes over 275 bans passed since January 1 and more than 150 since May 1 of the current year, threatens the expansion of data centers across America. These moratoriums, implemented by cities, towns, counties, and states, represent a significant shift in local government approaches to infrastructure growth, potentially impacting the data center boom. The analysis was based on an exhaustive review of legal documents and local news reports.

Key takeaway

For investors in data center infrastructure, you must reassess growth projections given the escalating number of local government bans. Over 300 temporary and permanent moratoriums have been enacted since 2023, with 75 more under consideration, significantly increasing regulatory risk. Factor these widespread restrictions into your capital allocation strategies and site selection processes to mitigate potential project delays and cancellations.

Key insights

The U.S. data center boom faces widespread local government bans, with over 300 enacted since 2023 and more under consideration.

Method

The Information identified bans by exhaustively combing legal documents and local news reports across the U.S.

Topics

• Data Centers
• Infrastructure Development
• Local Government Bans
• Regulatory Risk
• U.S. Real Estate

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Information.