This week’s Zoning In highlights a troubling trend for the data center industry: opposition continues to accelerate across the country. A new report from Data Center Watch found that at least 75 projects representing more than $130 billion in investment were delayed or canceled during the first quarter of 2026 alone—already surpassing the number of construction setbacks reported during all of last year. At the same time, the number of organized opposition groups has more than doubled, signaling that resistance to data center development is becoming increasingly coordinated and influential.
That trend was evident this week as communities across the country continued to pursue bans, moratoriums, legal challenges, and stricter oversight of proposed projects. From San Marcos, Texas, voting to prohibit data centers outright, to new moratorium efforts in Georgia and South Carolina, local governments are taking a more cautious approach as concerns over power demand, water use, transparency, and community impacts continue to grow.
Perhaps most notably, data centers are increasingly becoming a political issue. A recent analysis found that a majority of the nation’s most competitive congressional districts now have data centers planned or under construction, while regulators in Texas are advancing new processes to manage unprecedented power demand. Together, these developments suggest that data center growth is no longer simply a local land-use issue—it is rapidly evolving into a broader debate about energy, infrastructure, economic development, and public policy.
How Utahns Took on Mr. Wonderful and a Data Center on the Great Salt Lake
The backlash against Kevin O’Leary’s proposed Stratos Project in Utah’s Box Elder County has evolved from a local land-use dispute into a significant political issue ahead of the state’s Republican primary elections. Originally envisioned as one of the world’s largest data center developments, the project has drawn opposition from ranchers, environmental advocates, and conservative voters concerned about water use, tax incentives, energy demand, and impacts on the Great Salt Lake.
What makes the Utah fight particularly notable is that opposition is emerging from traditionally pro-development, Republican constituencies. Residents have packed public meetings, launched legal challenges, and targeted elected officials who supported the project. The controversy has already forced O’Leary to scale back the project’s footprint and has become one of the nation’s clearest examples of how data center development can quickly become a potent political issue when communities feel excluded from the decision-making process.
A new report from Data Center Watch suggests opposition to data center development is accelerating at an unprecedented pace across the United States. According to the study, at least 75 projects representing more than $130 billion in investment were delayed or canceled during the first quarter of 2026 alone, while the number of active opposition groups more than doubled nationwide.
San Marcos City Council bans data centers — against mayor’s wishes
In a significant development for one of the nation’s fastest-growing data center corridors, the San Marcos City Council voted 4-3 to prohibit data centers within city limits. The decision comes despite opposition from Mayor Jane Hughson and follows months of debate over whether stricter regulations, rather than an outright ban, would be sufficient.
The vote reflects growing concerns about water resources, infrastructure capacity, noise, and cumulative development impacts along the rapidly expanding Austin-San Antonio corridor. San Marcos now joins a small but growing number of communities choosing to prohibit data center development altogether, highlighting how public opposition can ultimately reshape local economic development strategies.
Garden City puts brakes on data centers
Garden City, Georgia, has unanimously approved a six-month moratorium on new data center development, giving local officials time to evaluate how such facilities should be regulated. City leaders cited concerns over electrical demand, water consumption, noise, and the lack of existing zoning provisions specifically addressing data centers.
The move adds another Coastal Georgia community to the growing list of jurisdictions taking a pause to study the industry. Officials noted that developers are increasingly targeting the region, and advocacy groups urged municipalities to act proactively before proposals arrive. The action further reinforces the trend of local governments seeking to establish data center-specific policies before major projects enter the entitlement process.
Protesters rally against data centers as Missouri officials meet to discuss projects
Approximately 100 protesters gathered in Jefferson City as local officials attended a summit focused on data center development, underscoring the growing level of organized opposition in Missouri. Demonstrators called for greater transparency, stricter regulations, and additional scrutiny of projects they believe are being advanced without adequate public input.
At the same time, Missouri Governor Mike Kehoe continues to champion data centers as major economic development opportunities, arguing that much of the public concern stems from misinformation. The divide highlights a broader challenge facing policymakers nationwide: balancing the promise of economic investment and AI leadership with mounting concerns over community impacts, transparency, and long-term resource demands.
Tennessee business concerned about data center’s Electromagnetic Fields
As public scrutiny of data centers expands, concerns are beginning to move beyond traditional issues such as water, power, and noise. A Tennessee-based healthy homes consultant is calling for additional research into potential health impacts associated with electromagnetic fields (EMF) generated by large-scale data center infrastructure.
While the World Health Organization states that low-level EMF exposure has not been shown to cause adverse health effects, the discussion illustrates how opposition groups are increasingly broadening the scope of concerns raised during project reviews. Developers may find themselves addressing a wider range of community questions as awareness and public scrutiny continue to grow.
Judges pause Faribault, Pine Island data centers as emotions fill city council chambers
Minnesota courts have temporarily halted proposed data center projects in both Faribault and Pine Island, ordering additional environmental review before development can proceed. The rulings represent a significant victory for project opponents and add legal uncertainty to two of the state’s most closely watched data center proposals.
The decisions come amid growing statewide concern about artificial intelligence and data center development. Advocacy groups argue that environmental reviews and public disclosure processes have been insufficient, while residents continue to raise concerns about transparency, power consumption, and community impacts. The rulings could have broader implications for future projects across Minnesota by establishing higher expectations for environmental review and public engagement.
Researchers argue that resistance to data centers has evolved beyond isolated local disputes and is increasingly becoming part of a broader political and policy conversation. As projects expand into smaller and more rural communities, concerns over energy costs, environmental impacts, transparency, and quality of life are driving opposition across both political parties. The report suggests future conflicts may increasingly shift from public meetings and protests to legal challenges and organized advocacy campaigns.
Community opposition is intensifying in both Pittsburg and Gilroy, California, where residents are challenging large data center developments that have already received approval or are under construction. More than 300 residents attended a Pittsburg City Council meeting to oppose a planned data center at the former Delta View Golf Course, while similar concerns are being raised about an Amazon Web Services project in Gilroy.
A recurring theme throughout the public comments was transparency. Many residents argued they were unaware of the projects until long after approvals had been granted and called for moratoriums, citizen oversight committees, and additional public engagement. Concerns over energy consumption, water use, noise, emissions, and community character continue to drive opposition, even as developers and city officials emphasize economic development benefits and infrastructure investments.
What most battleground House districts have in common: Data centers
A new POLITICO analysis found that 40 of the nation’s 69 most competitive congressional districts have data centers either planned or under construction, highlighting how the industry is rapidly becoming a national political issue. As concerns over energy costs, water use, tax incentives, and land consumption spread, candidates from both parties are increasingly being forced to address data center development despite the absence of a clear national political consensus.
The report suggests that data centers are emerging as a significant factor in upcoming midterm elections, with campaign ads already linking projects to rising utility bills and affordability concerns. While many elected officials continue to support data center development for economic and national security reasons, the growing grassroots opposition movement is making the issue increasingly difficult to ignore and elevating local land-use disputes into broader political debates.
Maine data center on hold indefinitely as company backs out, despite veto of statewide ban
Sentinel Data Centers has withdrawn from a planned $550 million redevelopment project at the former Androscoggin paper mill in Jay, Maine, despite Governor Janet Mills’ successful veto of a proposed statewide data center moratorium. The project would have transformed the shuttered mill into a large colocation facility and was expected to generate hundreds of construction jobs and long-term employment opportunities for the region
Two huge data center projects in Montgomery County are dividing the community
Google and Amazon are moving forward with massive data center developments on nearly 1,900 acres along Interstate 70 in Missouri’s Montgomery County, but the projects continue to generate significant local opposition. While local officials tout the projects’ economic development potential, tax revenue, and job creation, residents have organized through Preserve Montgomery County to challenge approvals and question the adequacy of public engagement, water studies, and tax incentives.
The dispute mirrors similar battles occurring across the country, where concerns over water consumption, power demand, transparency, and community impacts are increasingly colliding with economic development goals. Opponents have filed lawsuits, launched public campaigns, and are now seeking political change through local elections, demonstrating how data center projects can become long-term community issues even after approvals have been secured.
Birmingham animal shelter joins opposition against proposed multibillion dollar AI factory
Opposition to Nebius’ proposed AI-focused data center in Birmingham continues to expand, with the Greater Birmingham Humane Society becoming one of the latest organizations to publicly challenge the project. The shelter, which is developing a new animal care campus near the proposed facility, has raised concerns about potential impacts from noise, lighting, traffic, water use, and electrical infrastructure, arguing that the project could affect the recovery and wellbeing of animals in its care.
The development comes despite Birmingham recently adopting what city leaders describe as one of the nation’s strongest data center ordinances. The project itself remains exempt from many of the new requirements because it was already in the permitting process. The situation illustrates how opposition coalitions can broaden beyond traditional environmental groups and include community institutions that may not typically engage in land-use battles.
‘No Microsoft’: Rally held against proposed data center in Lowell Township
Opposition to Microsoft’s proposed data center project in Lowell Township, Michigan, continues to intensify following a lengthy public hearing that drew hundreds of residents. Community groups and regional activists recently organized a rally to highlight concerns about environmental impacts, public health, water resources, and the long-term implications of large-scale data center development.
While many opponents stress they are not universally opposed to data centers, they argue that significant questions remain unanswered regarding environmental impacts and community readiness. The growing regional coordination among anti-data center groups suggests that opposition movements are becoming increasingly organized and are sharing strategies across communities facing similar proposals.
A $19.5B data center and a statewide pause: What’s at stake in Genesee County
As New York lawmakers consider a statewide one-year moratorium on new large-scale data centers, the proposed $19.5 billion Stream Data Centers campus at the STAMP site in Genesee County has become a focal point in the broader debate over AI infrastructure, energy demand, and economic development. The legislation would temporarily halt permits for facilities requiring 20 MW or more while the state studies impacts on electricity prices, water resources, and the environment.
The controversy surrounding Stream’s proposed 500 MW campus highlights many of the issues increasingly driving opposition nationwide. Critics, including the Tonawanda Seneca Nation and Sierra Club, argue the project’s public incentives outweigh community benefits and raise concerns about power consumption, environmental impacts, and transparency.
Spartanburg County Council plans data center moratorium as new project looms
Spartanburg County, South Carolina, is preparing to join a growing list of communities considering a pause on data center development after county council unanimously directed staff to draft a moratorium on new projects. The move follows ongoing controversy surrounding the NorthMark data center and concerns over a potential new facility known as Project Lighthouse.
County leaders cited constituent concerns about power demand, water availability, environmental impacts, noise, and transparency as key drivers behind the proposed pause. The action reflects a broader trend emerging across the Southeast, where local governments are increasingly seeking time to develop data center-specific policies before approving additional projects. The decision also underscores how community opposition can continue to influence policy long after initial project approvals have been granted.
Public pushes back against proposed data center in Elk River
Residents packed a public hearing in Elk River, Minnesota, to voice concerns about a proposed 33-megawatt data center that would occupy a former manufacturing facility. While the project is significantly smaller than many of the hyperscale developments making headlines nationally, community members raised familiar concerns about environmental impacts, noise, water use, and long-term compatibility with surrounding neighborhoods.
The debate comes as multiple Minnesota communities have recently enacted data center moratoriums, reflecting growing caution among local governments. Elk River officials are now considering both zoning amendments and operational standards before making a decision later this summer, illustrating how municipalities are increasingly seeking greater regulatory oversight before allowing new facilities to move forward.
Lexington community voices opposition to data centers at packed town hall
Just days after Lexington officials approved a four-month moratorium on data center development, residents packed a town hall meeting to voice concerns about a recently announced data center proposal tied to the sale of a former Lexmark property. Community members questioned the adequacy of the temporary pause and expressed concerns about environmental impacts, public health, and the long-term effects of data center development on the city.
Notably, none of the speakers at the meeting voiced support for the project, highlighting the intensity of local opposition. The situation demonstrates how quickly public concerns can escalate when communities feel major development decisions are occurring without sufficient public awareness or engagement, a theme that continues to emerge in markets across the country.
Northern Virginia residents and lawmakers sound off on data centers in town hall
The debate over data centers continues to intensify in Northern Virginia, where residents, lawmakers, and industry representatives recently gathered for a town hall focused on tax incentives, community impacts, and the future of the industry in the Commonwealth. Much of the discussion centered on whether Virginia should continue providing substantial tax incentives to data center developers as concerns over power demand, land use, and affordability grow.
Residents living near existing and proposed facilities raised concerns about grid reliability, environmental impacts, and fairness, while industry representatives emphasized the sector’s economic contributions and role in supporting the digital economy. The discussion reflects the increasingly complex balancing act facing Virginia policymakers as the state seeks to maintain its position as the nation’s largest data center market while responding to mounting public pressure for greater oversight.
Eagle Rock faces community questions over proposed Christian County data center
Residents in Christian County, Illinois, packed a public meeting to question Eagle Rock representatives about a proposed $8.8 billion data center project. Concerns focused on water use, farmland preservation, proximity to homes, and the broader impacts such a large-scale development could have on the character of the community.
While supporters highlighted the project’s economic development potential, many residents indicated they remain undecided and are seeking additional information before forming an opinion. The meeting serves as another example of communities demanding greater transparency and direct engagement from developers before embracing projects that could significantly alter local landscapes and infrastructure demands.
Texas grid operator ERCOT is preparing to overhaul the way it evaluates requests from large electricity users, including data centers, as an unprecedented wave of new projects floods the interconnection queue. Regulators are considering a new batch-review process designed to distinguish viable projects from speculative proposals and improve long-term grid planning.
The move comes as ERCOT grapples with more than 225 large-load interconnection requests, roughly 70% of which are data center-related. Industry leaders argue the new approach could become a national model for managing AI-driven infrastructure growth, while helping utilities better plan for future demand. The development highlights how power availability and grid planning are rapidly becoming as important to project success as zoning, permitting, and community acceptance.
Conservatives plan nationwide protest against AI data centers
Opposition to data centers continues to evolve beyond local land-use disputes and into organized national political activism. Conservative advocacy group Humans First has announced a nationwide day of protest on July 18 targeting what it describes as the unchecked expansion of AI data centers, with rallies planned across multiple states including Georgia, Texas, Florida, California, and Virginia.
The development is notable because it demonstrates how data center opposition is increasingly attracting support from both ends of the political spectrum. Organizers are framing concerns around water consumption, energy demand, land use, noise, transparency, and national security, signaling that resistance to AI infrastructure is becoming a broader political movement rather than a collection of isolated local battles.
Broadview resident proposes putting data center approval to voters
Opponents of a proposed 5,000-acre data center project near Broadview, Montana, are pushing for a ballot initiative that would require voter approval before large-scale data center developments could move forward. Supporters of the measure argue that communities should have a direct voice in decisions involving projects with potentially significant impacts on land use, water resources, and infrastructure.
The proposal reflects a growing trend in which opponents are seeking structural changes to the approval process itself, rather than simply challenging individual projects. If successful, such efforts could create new hurdles for developers and shift decision-making authority from elected officials and planning boards directly to voters.
