The number of local bans on new data center developments jumped to over 500 in July, according to recent data. Local politicians in the United States are refusing to approve new data center construction in greater numbers, posing a threat to the expansion required by AI firms to provide the capacity needed to power the new technology. The analysis, conducted by The Information from legal documents and local news reports, shows that this isn’t a partisan issue.

Republican- and Democrat-run states, towns and counties have all begun to block new data center projects, with Texas and New York both prominent entries from both sides of the political divide, and with the majority of the bans appearing in the Midwest and South, according to the report.

Politicians aren’t doing this out of spite, but in response to the growing concern from residents over the impact on communities. Among them are the impact of noise on local residents, as well as the disproportionate impact on public services, including on water and electricity supplies. It follows Texas Governor Greg Abbott’s moratorium on data center approvals in recent weeks until an extensive audit has been conducted of companies looking to hook their new centers up to the Texan power grid.

The Information’s analysis shows that the bans are growing fast, jumping from 300 in late June to over 500 in July. The ban in Texas is particularly noteworthy due to the state becoming a prominent home for AI data centers. Despite Governor Abbott’s pause, Amazon is still hoping to build a new gas power plant in Pecos County, Texas, to power a data center at the same location. That location is already believed to likely become the single biggest source of environmental pollution in the U.S. once it’s operational.

The rapid growth of new data centers in Texas and nearby states has likely fueled those concerns from residents. The Information reports that most of the bans are in the Midwest and South, with more than 400 restrictions now in place, with nearly three-quarters of the moratoriums approved in July occurring in southern states like Georgia and Florida. Florida, in particular, is quickly stopping new developments, with 14 out of 23 current active restrictions in that state being approved in July, and 15 more under consideration.

Small and big, rural and urban states alike are all seeing political capital used on preventing AI data center expansion. Kathy Hochul, Democrat Governor of New York, recently signed an executive order that paused approval for all data centers consuming 50 megawatts of energy or more. Massachusetts and Nebraska halted tax breaks for developers, while in Colorado, 19 bans are now in place around Denver, and more elsewhere in the state, due to concerns specifically around the impact on the environment and on water usage. In Nashville, Tennessee, a 23-acre data center development next to a zoo, expected to cost up to $700 million, is also facing local and political resistance.

It’s no surprise to see politicians begin to wake up to the public malaise against AI development. Over 70% of Americans are reportedly against more AI data centers, and direct resistance against them is growing, with at least 37 people arrested so far this year for protesting against new developments.

The public pushback against data center construction projects is only growing stronger, even as some protesting local residents have been arrested in the process. That hasn't perturbed those still standing against the AI infrastructure projects, though, and they continue showing up at town meetings, holding protest rallies, and making themselves heard — even with the 24/7 drone of a data center hum in the background.

The latest effort saw Nashville residents and local politicians move to block the construction of a $700 million data center set to be built right next to the Nashville Zoo at Grassmere. The city council approved a blocking measure last week, and now Mayor Freddie O'Connell will wield it to make sure the project doesn't go ahead.

This follows on from another recent story where a Kentucky farming family was offered 10 times their land value to sell up to data center developers, and they refused. Virginia's State Corporation Commission, which regulates public utilities, just ruled that data centers must pay for all the required transmission infrastructure that they have exclusive use of, in an effort to reduce energy bills for residents.

Nobody wants to live near a data center

Data center projects have been firmly disliked by large bodies of Americans since the beginning of this major AI buildout. Early in 2025, it became clear that even as the major AI companies were promising hundreds of billions for "AI factories," governments around the world rushed to build capacity. There was only one problem: residents near the proposed build sites would not be taking it lying down.

In April 2025, Elon Musk's Colossus data center was an early target for protest after it was found to be using permitless mobile gas turbines for power. It's been hit with enough pushback since then that SpaceX has now agreed to remove the 69 turbines it ultimately installed, although it is going to take over a year to complete the move of these allegedly mobile turbines.

By the Fall of last year, evidence had begun to mount about the negative impact of these installations. Water shortages and potential contamination, electricity price increases for residents, and the constant, unending noise that may be causing health problems with sub-audible frequencies.

There's also the slowly growing number of "against" voices in polling for new data centers. What started as a light advantage to the "supports" respondents in September became a near-majority a few months later. Now more than 70% of Americans don't want data centers near their homes, and there's little chance of that changing as the stories of issues during and after construction of these facilities continue to mount.

How the people are fighting back

Protest has been at the forefront of the anti-data center campaigners' playbook since the start, and that's not stopping any time soon. On one weekend in July, anti-data center protestors organized in 42 states to stage 142 protests across the country, all calling for blocks, halts, and moratoriums on the data center rollout.

This is after months of campaigning, which led to close to 70 jurisdictions around the country blocking new data center builds. Some of them, permanently.

Where politicians are more on the side of the developers, the people are going to meet them in person. They're going to town halls and seeking meetings and making their voices heard.

Sometimes politicians don't like that, and people are removed - even when protesting peacefully - and in several cases they've actually been arrested. Close to 40 people have been arrested in 2026 for pushing back against data center rollouts. In one case, because they went beyond their allotted speaking time, and in another, because they clapped following an impassioned statement by a fellow citizen.

In other cases, though, politicians are listening. In Nashville, the local council and the mayor are all on board to protect the local Zoo and residents' bills and ears. This is particularly important because it shows that local legislators can use their political power to block data centers — potentially preventing the White House from using its own to drive projects through.

The forever war

The data center builders aren't taking all of this helplessly. They have the ears of government and massive platforms to evangelize AI and data centers; They've been doing it everywhere from the White House to social media. They've tried building in more rural areas where there are fewer people to protest, paying for their own behind-the-grid power, and offering to spend millions in local investment to counter negative effects.

But it's not working. People don't like data centers. They don't want to live near them. And on top of that, many don't even like the technology the hyperscalers want to build this all for, anyway.

It's unlikely that those bankrolling (and hoping to make money on) the data center AI build-out will just give up and go home, but the residents fighting back against their gargantuan construction projects aren't going to do so either.

This is a long war, and one that neither side is likely to back down from. But in a rare ray of hope in 2026's landscape of high PC and electronics prices due to AI data centers soaking up computing hardware, it's one that the people seem to be winning, for now.

A new Amazon data center is set to become the single largest source of environmental pollution in the U.S., according to a New York Times report on August 8. The tech giant — which already operates the most data centers worldwide — is reportedly building a natural gas power plant in Pecos County, Texas, to power its new data center at the same site. According to project permits, the plant would generate up to 7.65 gigawatts of power using 35 natural gas turbines. The new plant — which burns natural gas to generate electricity — has been authorized to release 33 million tons of CO₂ annually, more planet-warming gases than any other power plant in the country, says the NY Times report.

Conversely, Amazon had pledged to achieve net-zero carbon emissions across all its global business operations by 2040. The company made the promise in 2019 when it initiated and co-founded The Climate Pledge — a voluntary coalition of over 700 companies and partners — aimed at addressing its own corporate footprint and rallying global supply chains. However, the company has seen its emissions rise each year for the past several years, something analysts attribute to a spike in data centers to support the AI boom. The company is currently building several additional AI data centers globally, including the one that the new gas plant would power in Texas.

Amazon has acknowledged the impact of its intense AI ambitions on its earlier climate pledges but insisted the company remained committed to them, despite obvious struggles. “The world looks different now than when we co-founded the climate pledge,” said Margaret Callahan, an Amazon spokeswoman. Still, “our commitment hasn’t changed,” she said, echoing similar statements by Microsoft, which is struggling to fulfill its 2030 sustainability promise amid carbon-heavy AI expansion, but insists it remains committed to it.

As detailed in our data center power roadmap, an increasing number of hyperscalers and data center operators are switching from grid connections to dedicated on-site power generation. The “behind-the-meter” moves are being triggered mainly by the long timelines required to set up new power infrastructure to connect new power-hungry data centers to the grid, but also by growing anti-data center sentiments over irreversible hikes in the electricity bills of nearby communities.

While many companies are also pursuing nuclear and renewable energy options — examples being Microsoft’s Three Mile Island nuclear deal and Meta’s agreement to secure up to 1GW of orbital solar energy capacity — gas appears to be the leading preference due to its scalability and speed of availability. The Trump administration has thrown its weight behind such projects for data centers, promoting oil, natural gas, and coal over renewable energy sources.

The city council of Emporia, Kansas, the same council that had a teacher arrested for clapping in support of the opposition, announced that it will move its meetings online after its members received death threats. According to 404 Media, Emporia announced this move two days before the meeting set for August 5, 2026, and will also affect the one set on August 19, 2026.

“In the interest of public safety, the Emporia City Commission meetings scheduled for Wednesday, August 5, 2026, and Wednesday, August 19, 2026, will be conducted virtually. No public comment period will be provided during either meeting,” the city said on its Facebook page.

“The City remains committed to conducting the public’s business in an open and transparent manner while taking reasonable measures to protect the safety of elected officials, City staff, and members of the public. The City appreciates the public's understanding and cooperation as it implements these temporary measures while ensuring the continuity of City business.”

The move to a virtual meeting is an understandable move given the death threats on some of the city leaders. However, it also canceled public comments and instead directed citizens to an email address and phone number where they can air their concerns privately. This led to some citizens airing their complaints in a protest outside the Emporia municipal auditorium.

“While I don't doubt that there are credible threats, my big question is on how many there are and from where they are coming. Mayor Smith did mention in yesterday's meeting that the threats don't seem to really be coming from locals but ‘it only takes one’ to ruin a meeting so they went virtual. I feel like we're being punished for the actions of outsiders,” Lux Claridge, the person arrested in the previous council meeting, told 404 Media.

“I'm not so upset about going virtual, it makes sense, but back it up with examples of these threats. I'm more upset that they opted to close public comment and I don't understand why.”

One of the things that the council considered during the meeting was the petition to put a data center ban on the ballot, with the members voting unanimously to send it for judicial review. The council claimed that doing otherwise could open the city to a lawsuit from either side, although it did not elaborate on the reason why this would happen.

While we haven’t heard of a local jurisdiction getting sued for passing a data center ban, one Texas senator warned a county in the state that it cannot legally impose this. So, the commissioners are likely being careful to avoid legal issues, even if they’re in another state.

The community of Gilroy, California, about 30 miles southwest of San Jose, was surprised when an Amazon data center started construction in their town last month. But as many projects like these have been suffering from opposition and delays across the country, the Wall Street Journal reports that this specific site avoided scrutiny by adhering to local zoning rules set 45 years ago.

Amazon’s Gilroy project sits on a 56-acre piece of farmland between a Walmart Supercenter and the Gilroy Premium Outlets. The company and the city didn’t exactly keep the project secret when it started its application in 2020. In fact, there were disagreements between the tech giant and the city government during the process. The publication noted that some Amazon officials were frustrated by slow permitting progress, which was delayed by at least one year. At the same time, the city pushed back on some of the company’s requests, especially if they were no longer up for discussion.

Roger Wehner, Amazon Web Services vice president of economic development, told WSJ that the site had gone through a long approval process, which required public notices and public-comment periods. However, when Gilroy resident Rosa Rodriguez wanted to state her concern about the damage a data center can do to a region suffering from drought, she was told that the comment period had already lapsed in 2024, long before data centers became a hot topic across the country.

Gilroy City Mayor Greg Bozzo said that other industrial projects that had a similar scale to the Amazon data center have previously been approved without resistance.

“It didn’t bother them that a food-distribution center came to Gilroy without their engagement, but now it bothers them that a data center is coming to Gilroy without them having the possibility of engagement,” Bozzo said.

Still, he conceded the people are now more aware about data center developments and added, “We…have an opportunity to change the way that we do business in Gilroy. We’re adapting to the times.”

The tech giant also said that it’s engaging more with the community, with Amazon officials claiming that they met residents directly and even hosted an open house where people can ask questions and leave comments. It also addressed fears that the development would cause a water shortage, which other data centers have already caused, saying the company is constructing a wastewater recovery system to supply its water needs and will even build a pipeline to bring wastewater from the source to its plant.

Bozzo also highlighted the benefits that Amazon will bring to the city, especially increased tax revenue, construction jobs, and a million-dollar donation towards a new fire truck. He also pointed out that the tech giant has been giving grants to non-profit organizations in the city, as well as sponsoring the annual Gilroy Garlic Festival.

But at this point, it’s not the Amazon data center the people of Gilroy are having an issue with. Instead, it’s the fact that a major project that has the potential to have a major impact on the community has been approved without the knowledge of many residents.

The Salem City Council convened a public meeting last July 27, where it discussed the proposed $5.1 billion Oakline at Mill Creek data center by Verrus. As the people converged on the meeting site, a TikTok user spotted a guillotine towed by a bike outside of the venue, signaling the people’s discontent with the project.

According to NewsData, the consultation lasted for more than six hours as several members of the community voiced their opposition towards it. The developer’s representatives were initially on-site to hear the comments, but had to leave midway through as they were confronted by some protesters.

“During a break in the proceedings, a group of opposition members cornered Verrus representatives and shouted insulting remarks, to the point where it no longer felt safe to stay,” Verrus spokesperson JP Newmann said, according to the publication. “We appreciate the support of local law enforcement in helping de-escalate the situation and escorting Verrus representatives from the site safely.”

One week after the meeting, Salem announced a data center moratorium that would halt all data center developments in the city for one year as it considers zoning laws to accommodate developments such as this. This adds Salem to the long list of jurisdictions that have passed similar moratoriums, including Seattle, Washington, and the State of New York.

Unfortunately, the Verrus project will likely not be affected by this delay as it filed its application three days before the announcement. Despite this, Governor Tina Kotek (D) announced that Oregon will terminate a deal to sell a 32-acre plot of land that forms part of the three plots of land on which the project will sit. While it still leaves Verrus with approximately 43 acres, it means that it would have to go back to the drawing board to change its plans. This is similar to what Nashville did when it used its eminent domain power to deny the land that another developer wanted to use to build a data center near the historic Nashville Zoo.

But because Verrus submitted its application before the moratorium announcement, the city is still processing its proposed data center project. That does not mean that it will get an immediate green light, though. It still has to go through an extensive permitting process, which includes technical studies, permit conditions, and enforceable agreements, among others.

Oregon is one of the first states to enact a law that ensures large consumers, like data centers, pay for the majority of the grid upgrades needed to serve their needs. This allowed Portland General Electric, the state’s largest power provider, to increase the bills of users who used more than 20 MW by 30%, while also affecting a 1.3% cut in residential electricity costs. But despite this protection that stops ratepayers from price shocks, many people are still against data center projects in their towns and cities.

The State Corporation Commission, Virginia’s independent state agency that regulates public utilities, has ordered data centers to pay for all the required transmission infrastructure that the project will use exclusively. According to Realtor.com, Governor Abigail Spanberger (D) has recently been pressing AI hyperscalers to reduce their impact on the power grid and utility prices.

Virginia currently has the greatest number of data centers across the U.S., with the state hosting at least 570 sites. Because of the massive power demand of these sites, the state has been experiencing issues with electricity price hikes, with one county even asking its employees, including schools, to conserve power. PJM Interconnection, which distributes power to the state, has increased prices by 76%, with Monitoring Analytics, the independent watchdog keeping an eye on the utility company, saying that this is mostly due to AI data centers.

The move requiring data centers to pay for their own upstream electrical infrastructure should, hopefully, ease the burden on the average Virginian. "We are taking real steps to address rising energy costs for Virginians," said Gov. Spanberger. "I will continue to work with the General Assembly and take action to make sure data centers pay their fair share, adhere to strict environmental standards, and listen to the concerns of local communities.”

This is one of the first statewide announcements that will enforce President Donald Trump’s ratepayer protection pledge. Trump summoned the biggest AI hyperscalers to the White House in early March and made them promise that they will “pay their own way” when it comes to building the infrastructure they need. But despite this, the burden of more expensive electricity hasn’t eased for the average American. The administration expanded this promise in late July to include state governors, utility companies, and data center developers.

Many critics said that this pledge is nothing but a piece of paper, with some comparing it to a “pinky promise.” After all, this is just a commitment and not a regulation that would penalize companies that don’t comply. Nevertheless, it seems that it has spurred at least one state to make a move that should, hopefully, have a material impact on the average citizen.

Aside from Virginia, Oregon is the only other state, so far, that has raised electrical rates for large consumers, like data centers. According to the Oregon POWER Act, facilities that consume 20 MW or more are assigned to a higher rate class. Portland General Electric, the state’s largest power supplier, has already implemented this, resulting in a 30% rate increase for these big power users, while also cutting residential costs by 1.3%.

While the average consumer isn’t necessarily paying for the power that data centers consume, utility companies had to conduct massive grid upgrades to support the increased demand from these developments. The utility companies then equally passed on all the necessary capital expenditure to all consumers, instead of just the data centers. By requiring data centers to spend on their own grid upgrades, further increases in electricity prices could, hopefully, be prevented.