Data center developers, investors and energy providers currently face a wave of political opposition against the industry. Recent polls show 70% of Americans now oppose AI data center construction in their communities. In 2025 alone, more than 200 bills targeting data center siting, energy use, tax incentives and environmental standards were introduced across all 50 states, with over 40 enacted into law. As of August 2026, moratorium legislation has been introduced in at least 15 states and more than 100 local governments have enacted outright bans or restrictions, blocking or delaying an estimated $64 billion in projects.
New York became the first state to impose a statewide moratorium on hyperscale data centers. Texas halted new data center grid connections pending an ERCOT audit. Pennsylvania enacted what its governor called the “strictest guardrails in the nation,” requiring self-funded energy infrastructure, binding environmental standards and local government consent as a precondition to state permitting. In California, 88% of voters in Monterey Park approved a permanent ban on data centers. Beyond moratoria, a wave of ratepayer protection laws in Florida, Tennessee, Oklahoma and New Jersey is fundamentally altering the economics of data center development. Tax incentive freezes in Arizona, Illinois and Ohio are closing doors that were open just months ago. And at the federal level, the Ratepayer Protection Act advanced out of committee and moratorium legislation has been introduced in both chambers of Congress.
Stakeholders who engage proactively can shape the regulatory environment rather than react to it. Clean energy commitments, participation in legislative processes and a dedicated public affairs plan to engage public officials with facts and analysis, test and shape public opinion, and pursue other targeted public affairs strategies offer pathways to differentiate projects and secure necessary approvals. The legislative templates emerging in states such as Oklahoma, Tennessee and Florida are portable — other states are watching and the window to influence these frameworks is narrowing.
For a detailed analysis of the legislative landscape and its implications for your projects, see the full briefing: Data Center Legislation: Trends, Risks and Strategic Considerations.
