INSIGHTSSERIES
Power & Utilities | Smart Grid
August 3, 2026
U.S. Data Centers Face Permitting Restrictions as Policymakers Reconsider Regulatory Frameworks
Policymakers are turning to moratoriums as they reassess the pace and impacts of data center growth amid mounting concerns over electricity demand, consumer costs, and environmental effects.
Data centers are facing increasing regulatory scrutiny driven by concerns over electricity demand, grid reliability, consumer costs, water use, and environmental impacts. The growing wave of moratoriums, permitting pauses, and…Read the full report
Key Takeaways
- New York Governor Kathy Hochul has imposed the nation’s first statewide moratorium on new hyperscale data centers, pausing new projects for up to one year while the state develops a comprehensive regulatory framework.
- Congress is considering sweeping measures to regulate AI data centers, including a nationwide temporary moratorium until national safeguards are in place and a permanent ban on federal lands.
- While numerous local governments have adopted temporary moratoriums, Monterey Park became the first U.S. city to permanently ban new data centers through a ballot measure, with more than 86 percent voter support.
