The rapid growth of artificial intelligence (AI) is driving huge demand for data centers, but several governments and cities are now restricting new projects due to concerns over electricity use, water consumption, land availability, and environmental impact. As AI infrastructure expands, authorities are introducing moratoriums and stricter regulations to balance technological growth with sustainability.
New York has become the first U.S. state to impose a one-year moratorium on the construction of new data centers using 50 megawatts (MW) or more of power. During the pause, the New York Department of Environmental Conservation will not issue new discretionary permits while it develops standards to assess the environmental impact of large data centers.
According to New York’s policy, the temporary freeze will remain in place while officials create environmental standards for future data center projects.
In Maine, Governor Janet Mills vetoed a proposed 18-month moratorium on large data centers using more than 20 MW of power. While supporting the idea of a temporary pause, she opposed the bill because it did not include an exception for a planned project in the town of Jay.
Meanwhile, residents of Monterey Park, California, voted in June 2026 to permanently ban data centers, making it the first U.S. city to approve such a measure through a public vote.
In Europe, Amsterdam has extended its restrictions on new data centers and expansions until at least 2030, while the Dutch government continues limiting hyperscale facilities to designated locations.
Ireland has taken a different approach. After restricting new data center connections in Dublin since 2021 due to pressure on the electricity grid, the country lifted the freeze in late 2025. However, new facilities must now provide their own on-site power generation.
These measures highlight how governments are increasingly balancing AI growth with energy security, environmental protection, and community concerns.
