Many places in the United States are tightening regulations on the construction of AI data centers. Local governments and communities are concerned about freshwater supply, electricity costs, and land use. As the scale of these projects continues to expand, local opposition to data centers is gradually shifting from the level of urban planning to state-level legislation.
Research points to water use pressure
This round of discussion is related to a study published by Ceres. The study analyzed the water intake practices of power plants that supply electricity to data centers in Virginia, Texas, California, Illinois, Georgia, Ohio, and Arizona. These seven states are home to approximately half of all data centers in the United States.
Research indicates that these power plants consume approximately 3.4 trillion gallons of fresh water each year, which is equivalent to about 10.4 million acre-feet. This amount exceeds the average annual urban water demand of California and is also roughly 12 times the total annual water consumption of Los Angeles, Phoenix, and Washington combined.
Ceres It is also indicated that among the power plants that use water resources within the aforementioned states, approximately 66% are facing moderate to high levels of water stress. The study statistics refer to the amount of water drawn by the power plants from sources such as rivers and reservoirs; although some of this water is returned, the water consumed through processes like evaporation cannot be immediately reused.
Austin initiates rule revision
The Austin City Council in Texas has voted to advance relevant restrictions. Local officials will next draft revisions to the land development regulations to clarify the definition of data centers and set corresponding restrictions. The first phase of the regulations is expected to be submitted for review in December.
The non-profit consumer rights organization Public Citizen stated that this vote contrasts with the more limited responses previously given by the Texas state government. The organization believes that local governments are now responding more directly to community concerns regarding large data centers.
Construction banned or approval suspended in multiple places
Austin is not an isolated case. In June, San Marcos in Texas prohibited the establishment of data centers based on zoning regulations. Durham in North Carolina and Cave City in Kentucky implemented suspension orders. Earlier this month, Jersey City in New Jersey also banned the use of data centers as the primary purpose for industrial land.
The article states that in early 2026, at least 75 proposed projects encountered local opposition, involving a total investment of about 130 billion US dollars. Protests surrounding the AI data center have also been increasing, and since 2026, at least 37 people have been detained in related demonstrations.
State-level actions are starting to increase.
Relevant disputes have also reached the state legislature level. In April of this year, lawmakers in Maine passed a bill to impose a statewide suspension on large data centers, but Governor Janet Mills later vetoed the bill, one of the reasons being that the bill did not exempt a proposed project by Jay. Subsequently, she established an advisory committee to specifically study data center policies.
Earlier this month, Pennsylvania introduced new requirements for large data centers, including the annual disclosure of water and energy usage data. Meanwhile, street protests surrounding the expansion of the AI infrastructure continue. In March, about 200 demonstrators gathered outside the offices of OpenAI, Anthropic, and xAI in San Francisco, demanding a pause in the development of the more powerful AI system.
