Factbox-Authorities restricting data centres amid AI boom

Governments, regulators and cities worldwide are implementing measures to restrict or ban new data center construction, driven by concerns over energy consumption, water supply, land scarcity and the impact on local communities. In Pennsylvania, Governor Josh Shapiro issued an executive order requiring AI data centers to adhere to environmental and transparency standards, suspending the state's Fast Track permit program for such facilities and prohibiting local governments from entering non-disclosure agreements with developers.

New York became the first U.S. state to impose a one-year moratorium on data centers consuming 50 megawatts or more of power, with the Department of Environmental Conservation barring new permits during the freeze to assess environmental impacts. Governor Janet Mills vetoed bipartisan legislation proposing an 18-month moratorium, citing the bill's lack of an exception for a specific project.

Monterey Park, California, became the first U.S. city to ban data centers by popular vote, following community opposition to a planned facility. The Netherlands has enacted a series of moratoriums, with the capital banning new developments since 2019 and restricting new or expanded data centers until at least 2030. The Dutch government's 2022 ban limits large facilities to two designated locations, though Microsoft secured approval for a project in 2026.

Ireland restricted data center connections in the Dublin area in 2021, requiring new connections to generate their own power. Australia plans to establish an Office of AI to develop standards for large data centers, including location, power and water use, with legislation expected soon. Denmark's government proposed a bill prioritizing grid connections for households, healthcare, industry, transport and renewable energy projects over data centers, addressing capacity shortages and strained power grids.