Cities and Counties Across the Country Move to Pause Data Center Construction Amid Resident Concerns
Why It Matters for Idaho
The wave of local moratoria on data center development sweeping the country arrives as Idaho communities face their own questions about the facilities. The Shoshone-Bannock Tribes have formally opposed data center development on and near the Fort Hall Reservation, and infrastructure pressures on water, power, and land in the region are drawing increased scrutiny from residents and local officials alike.
What Happened
Municipalities and counties in more than a half-dozen states have moved in recent weeks to halt new data center construction, citing concerns from residents about electricity consumption, rising energy costs, and quality-of-life issues tied to the massive server facilities.
The Denver City Council voted unanimously this month to impose a one-year moratorium on new data center zoning permits and site development plans while the city develops a regulatory framework. Oklahoma City passed a similar pause set to last through the end of this year, and Tulsa, Oklahoma, enacted its own temporary construction halt — though projects already in the development pipeline will be permitted to move forward.
In Illinois, the cities of Bloomington and Normal each approved six-month moratoriums, and Morgan County followed suit in April. Michigan’s Huron County this week enacted a three-year pause, bringing the total number of Michigan communities that have halted data center construction to roughly 20. Georgia’s Camden County became the first community on its coast to adopt a moratorium, also set for six months. In North Carolina, Chatham County acted in February and Orange County — which includes Chapel Hill — did so in April.
Not every community opted for the brakes. Cheyenne, Wyoming, concluded a lengthy public hearing this week and decided against a one-year moratorium, choosing to keep its doors open to the industry.
By the Numbers
- Researchers at the Lawrence Berkeley National Laboratory estimated U.S. data centers consumed roughly 4.4% of all electricity in the country in 2023.
- That figure is projected to climb to between 6.7% and 12% of U.S. electricity consumption by 2028.
- A Gallup poll conducted in March found seven in ten Americans would oppose construction of an artificial intelligence data center near their homes.
- That opposition rate exceeded the 53% of respondents who said they would object to living near a nuclear power plant.
- Approximately 20 Michigan communities have now paused data center construction, among the highest concentrations of local moratoria in any single state.
The Debate
Supporters of local pauses argue communities need a regulatory structure in place before projects break ground — particularly to address concerns about the strain large facilities place on regional power grids and local infrastructure. Data centers can draw enormous amounts of electricity, and critics say that cost burden ultimately falls on ratepayers.
The industry counters that data centers generate jobs, add to local tax bases, and form a critical backbone of the nation’s digital economy. Advocates for the sector warn that communities choosing to block development forfeit those economic benefits to other regions willing to accommodate the facilities.
State lawmakers in multiple states have also begun examining whether tax incentives historically offered to attract data center investment should be scaled back or repealed entirely — adding a legislative dimension to the local zoning fights.
Zoom Out
The backlash reflects a broader national reckoning with the land, water, and energy demands that come with rapid expansion of artificial intelligence infrastructure. In the Mountain West and Pacific Northwest, where water rights and power costs are perennial concerns, the stakes of hosting large server campuses are particularly high. Idaho communities evaluating similar proposals will likely be watching how cities like Denver and Oklahoma City structure the regulations they draft during their moratorium periods.
What’s Next
Cities and counties that have enacted pauses are expected to use the window to draft zoning codes and land-use standards tailored to data center development. Denver has one year; other communities have shorter timelines. How those local frameworks take shape could influence how other municipalities — including those in Idaho — approach future proposals.
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