Local bans on new AI data center construction have jumped to over 500 across the United States in July 2026, up sharply from 300 in late June, according to analysis by The Information. Republican- and Democrat-run states, towns, and counties have all begun blocking new data center projects, with bipartisan pushback driven by resident concerns over environmental impact, power grid strain, water consumption, and noise. The majority of bans are concentrated in the Midwest and South, with nearly 400 restrictions now in place.
Texas, which has emerged as a major hub for AI data center development, is seeing particularly intense political resistance. Governor Greg Abbott issued a moratorium on data center approvals pending an audit of companies seeking grid connections. Despite the pause, Amazon is still moving forward with a proposal to build a gas power plant in Pecos County, Texas, to power a data center — a facility already projected to become the single largest source of environmental pollution in the U.S. once operational.
Florida has accelerated restrictions sharply, with 14 of 23 active bans approved in July alone and 15 more under consideration. Other notable actions include New York Governor Kathy Hochul's executive order pausing approval for all data centers consuming 50+ megawatts, Massachusetts and Nebraska halting tax breaks for developers, and 19 bans now in place around Denver due to environmental and water-usage concerns.
Over 70% of Americans oppose more AI data center development, and direct protests have escalated — at least 37 people have been arrested so far in 2026 for protesting against new developments. A $700 million, 23-acre data center project planned next to a zoo in Nashville, Tennessee, is facing significant local and political opposition. The bans pose a direct threat to big tech's expansion plans, as hyperscalers race to add capacity during the AI capex cycle.