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States and Cities Move to Pause or Ban Large Data Centers

Local bans, one-year state moratoria, and freezes on tax breaks give officials time to study energy, water, and community impacts that could reshape planned projects

Overview

  • Lawmakers in New York approved a one-year moratorium that now awaits the governor, a measure that requires public hearings, minimum renewable procurement, and host‑community benefits.
  • Voters in Monterey Park, California, passed a citywide permanent ban on data centers this week that blocks future builds unless reversed by voters.
  • Seattle’s council committees have endorsed a one-year pause on centers drawing 20 megawatts or more and the full council is expected to vote soon to study local impacts.
  • Illinois Gov. J.B. Pritzker directed state agencies to stop processing new data‑center tax‑incentive applications starting July 1 while the state develops reporting, transparency, and community‑benefit rules.
  • The moves reflect rising public opposition and a shift in industry strategy, with developers and tech companies redirecting lobbying to state and local contests even as projects are canceled or delayed over power, water, noise, and cost concerns.