Where authorities are restricting data centres amid AI boom

Published 14 Jul, 2026 07:12pm 2 min read
A representational image. - Reuters
A representational image. - Reuters

A growing number of governments, regulators and cities around the world are moving to freeze, restrict or ban new data centre construction, as concerns mount ​over electricity costs, strained water supplies, land scarcity and the burden ‌on local communities from the infrastructure powering the AI boom.

Below are some key examples:

New York state, US

Governor Kathy Hochul imposed a one-year construction moratorium on data centres using 50 megawatts (MW) or ​more of power, making New York the first US state to ​enact a full moratorium.

During the freeze, the state’s Department of Environmental ⁠Conservation will not issue new discretionary permits while officials develop standards to assess ​the environmental impact of data centres.

Maine, US (vetoed)

Governor Janet Mills vetoed bipartisan legislation that would ​have enacted an 18-month moratorium on new data centres using more than 20 MW of power, a measure that would have been the first of its kind in the US.

Mills said ​she supported a moratorium in principle but objected to the bill’s failure to ​carve out an exception for a specific project in the Town of Jay.

Monterey Park, California, US

Residents voted ⁠to permanently ban data centres in the city in June 2026, becoming the first U.S. city to do so at the ballot box, following public backlash over a planned facility.

Amsterdam, Netherlands

The city imposed a one-year moratorium on new data centre ​developments in 2019. In ​April 2025, it ⁠barred new data centres or expansions in the municipality until at least 2030.

Separately, the Dutch national government’s 2022 hyperscale ban ​restricts large facilities to two designated locations nationally, though Microsoft ​won approval ⁠in January 2026 for a project split into three towers, each individually below the size threshold.

Dublin Ireland (restriction now lifted)

Ireland’s grid operator effectively blocked new data centre connections around ⁠Dublin ​from 2021 after warnings the facilities were straining ​the grid.

The freeze ended in December 2025, with new connections now required to bring their own on-site ​power generation.

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