Many areas in the United States are tightening regulations on AI data center construction. Local governments and communities are concerned about freshwater supply, electricity costs, and land use. As project sizes continue to grow, local opposition to data centers is expanding from municipal planning levels to state-level legislation.
Research points to water stress
This discussion relates to a study released by Ceres, which analyzed water withdrawals by power plants supplying electricity to data centers in Virginia, Texas, California, Illinois, Georgia, Ohio, and Arizona. These seven states account for approximately half of all data centers in the United States.
Studies show that these power plants withdraw approximately 3.4 trillion gallons of freshwater annually, equivalent to about 10.4 million acre-feet. This volume exceeds California’s average annual municipal water demand and is roughly 12 times the combined annual water use of Los Angeles, Phoenix, and Washington, D.C.
Ceres also stated that approximately 66% of power plants using water within the aforementioned states face moderate to high water stress. The study measures the volume of water withdrawn by power plants from sources such as rivers and reservoirs, where a portion is returned, but water lost to processes like evaporation cannot be immediately reused.
Austin initiates rule revisions
The Austin City Council in Texas has voted to move forward with related restrictions. Local officials will now draft revisions to land development regulations to clearly define data centers and establish accompanying limitations. The initial set of regulations is expected to be submitted for review in December.
The nonprofit consumer advocacy group Public Citizen said this vote contrasts with Texas state government’s previously more limited response, noting that local governments are more directly addressing community concerns about large data centers.
Multiple regions have banned construction or suspended approval.
Austin is not an isolated case. In June, San Marcos, Texas, banned data centers based on zoning regulations. Durham, North Carolina, and Cave City, Kentucky, have implemented moratoriums. Jersey City, New Jersey, also prohibited data centers from being the primary use of industrial zoning earlier this month.
The article states that, at the beginning of 2026, at least 75 proposed projects faced local opposition, involving a total investment of approximately $130 billion. Protests against AI data centers have also been increasing, with at least 37 people detained in related demonstrations since 2026.
State-level actions are beginning to increase.
The related controversy has also reached the state legislature. In April, Maine legislators passed a bill imposing a statewide moratorium on large data centers, but Governor Janet Mills vetoed it, partly because the bill did not exempt a proposed project in Jay. Since then, she has established an advisory committee specifically to study data center policies.
Earlier this month, Pennsylvania introduced new requirements for large data centers, including annual disclosure of water and energy usage data. Meanwhile, street protests over the expansion of AI infrastructure continue. In March, approximately 200 demonstrators gathered outside the offices of OpenAI, Anthropic, and xAI in San Francisco, calling for a halt to the development of more powerful AI systems.