States Consider Moratorium on Data Centers

How widespread is the opposition from people who don’t want farmland converted to data centers, are concerned about the water use from those facilities, oppose taxpayer subsidies for data centers, or a combination of those three complaints?

It is so much so that nearly one in four states have considered moratorium legislation on new data centers, according to Good Jobs First, a nonprofit organization that tracks government subsidies, actions that it considers corporate misconduct, and government subsidies.

RELATED: This farmer made national headlines when he refused an offer of nearly $15 million for his land so that a developer could build a data center. A non-profit organization helped make sure that the farmer’s land could remain set aside for agriculture even after he died.

Good Jobs First cited legislation in 12 states that could impede data center expansion. The states, which represent both Republican and Democratic-led areas, are looking at a series of restrictions that could enact a moratorium on data center projects.

In some cases, the moratorium would not take effect if the legislature took additional action in other areas that could be impacted by the presence of a data center.

These 12 states are considering changes:

• Georgia: Bans most new data center projects until March 1, 2027.

• Maryland: Prohibits new data center projects unless General Assembly also approves legislation for “co-location” with new or existing natural gas, nuclear, or small modular reactors.

• Michigan: Moratorium on new data centers and temporary pause on state incentives for data centers.

• Minnesota: No new data center permits until one year after the Public Utility Commission submits a review of possible data center development scenarios.

• New Hampshire: No new data center construction for a year. Creates legislative committee to look at data center’s environmental impacts.

• New York: Creates a statewide moratorium on data center permits. Directs Public Service Commission to minimize the data center impacts on electricity and gas rates.

• Oklahoma: Sets a moratorium on new data centers until November 1, 2029, and it directs the Oklahoma Corporation Commission to examine how data centers impact water supply, property values, siting, and utility rates.

• South Carolina: No new permits, approvals, or incentives for data centers until January 1, 2028.

• South Dakota: Forms a one-year moratorium on constructing or expanding data centers and determine electricity use by data centers.

• Vermont: Temporarily bans new data centers until July 1, 2030.

• Virginia: Local entities could not give final approval to data centers (rezoning, special permits, site plans) until the projects meet certain conditions in how it connects to the power grid.

• Wisconsin: Creates a statewide moratorium on data centers unless legislature first approves protections like making sure that data centers’ water and energy costs don’t get pushed onto residential customers.

RELATED: American Farmland Owner looked at some U.S. towns where neighbors are trying to stop construction of data centers.