Factbox-Authorities restricting data centres amid AI boom
July 20 (Reuters) – A growing number of governments, regulators and cities around the world are moving to freeze, restrict or ban new data center construction as concerns grow about electricity costs, limited water supplies, land scarcity and the burden on local communities from infrastructure powering the AI boom.
Below are some important examples:
NEW YORK STATE, USA
Governor Kathy Hochul imposed a one-year construction moratorium on data centers that use 50 megawatts or more, making New York the first U.S. state to enact a full moratorium.
During the freeze, the state’s Environmental Protection Agency will not issue new discretionary permits while officials develop standards for assessing the environmental impacts of data centers.
MAINE, USA (vetoed)
Gov. Janet Mills vetoed bipartisan legislation that would impose an 18-month moratorium on new data centers using more than 20 megawatts of power.
Mills said he supports a moratorium in principle but objects to the bill’s failure to create an exception for a specific project in Jay Township.
MONTEREY PARK, CALIFORNIA, USA
Residents voted in June 2026 to permanently ban data centers in Monterey Park, becoming the first U.S. city to do so at the ballot box following public outcry over the planned facility.
AMSTERDAM, NETHERLANDS
The Dutch capital imposed a one-year moratorium on new data center developments in 2019. In April 2025, the municipality banned new data centers or expansions until at least 2030.
Separately, the Dutch government’s 2022 hyperscale ban limits large facilities to two nationally designated locations; but Microsoft won approval in January 2026 for a project split into three towers, each individually below the size threshold.
DUBLIN, IRELAND (restriction now lifted)
Ireland’s grid operator has effectively blocked new data center connections around Dublin from 2021 following warnings that the facilities were straining the grid.
The freeze ended in December 2025, and new connections were now needed to bring its own electricity generation to the site.
AUSTRALIA (planned legislation)
Prime Minister Anthony Albanese said Australia will set up a government office to manage the development of AI standards, including rules covering the locations of large data centers and power and water use, with legislation due early next year.
There is currently no specific AI law in Australia; instead, a set of “privacy and consumer protection laws and a voluntary AI ethics framework” are used.
DENMARK
The Danish government has introduced a bill to parliament that would give new data centers the lowest priority for electricity grid connections due to growing capacity shortages.
The bill, backed by a broad cross-party agreement representing 80 percent of parliament, would instead prioritize housing, healthcare, industry, transport and renewable energy projects.
Denmark’s power grid has been under pressure due to an increase in demand for electricity and connectivity, including from large data centres.
(Reporting by Hugo Lhomedet and Cian Muenster in Gdansk; Editing by Matt Suffham and Milla Nissi-Prussak)
