The global drive for AI supremacy is leading to a rapid increase in data centers across the United States. However, many lawmakers and local authorities are expressing concerns amidst this construction boom. As per the National Conference of State Legislatures (NCSL), legislators in no less than 14 states are considering temporary halts or outright bans on new facilities. Critics argue that these data centers require substantial amounts of electricity and water, suggesting a cautious approach to allow local leaders sufficient time to evaluate their long-term effects. Proponents, including the former Trump administration, argue that these centers are essential in maintaining an edge over China in the AI race.
There are multiple states contemplating moratoriums, with municipalities like Monterey Park, California, joining others in Georgia and Indiana that have already imposed restrictions. Efforts to limit data center expansion include proposals in Georgia to halt construction until 2028 and a moratorium on larger facilities in Maine until late 2027, though this was recently vetoed. Meanwhile, similar proposals have not succeeded in Oklahoma, Minnesota, and New Hampshire, among others.
South Carolina legislators have introduced measures aimed at halting local approvals of data centers until comprehensive state oversight is in place. In Pennsylvania, lawmakers are pushing for a three-year ban on new data centers to coincide with detailed impact studies, reflecting a broader trend monitored by the NCSL.
Currently, the United States is home to over 3,000 data centers, with more than 1,500 new facilities in various stages of development, according to the Pew Research Center. Most new data centers are slated for rural areas in the South and Midwest. Despite this, 87% of existing facilities remain in urban locations. As of April, Virginia and Texas lead in the number of data centers, followed by California, Ohio, and New York.
Notably, several planned or under-construction data centers are situated near or directly atop the Ogallala Aquifer, a crucial groundwater source for U.S. agriculture. Construction is set to commence next year on a 438-acre site in Texas near Odessa, while Microsoft aims to acquire around 3,200 more acres in Wyoming for further expansion. Other significant projects are planned in Natrona County, Wyoming, and San Angelo, Texas.
The Ogallala Aquifer, running beneath eight states, is a vital groundwater resource in North America. Sustained water depletion in parts of the aquifer has reached over 100,000 acre-feet annually, and nearly 27% of stored water has disappeared in specific areas. Colorado State University’s Professor Sudeep Pasricha notes that, unlike surface reservoirs, the aquifer recharges slowly. In certain regions of the Great Plains, recharge rates are less than an inch annually – markedly lower than irrigation extractions. Pasricha highlights that replenishing lost water in some areas may take centuries or even millennia.