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Data Center Construction Blocks Reach 75 Cases Worth $130 Billion in Two Months

In Q1 2026, over 75 data center construction plans were blocked in the U.S., totaling $130 billion. Bipartisan opposition spreads as residents fear rising power and water costs.

4 min read Reviewed & edited by the SINGULISM Editorial Team

Data Center Construction Blocks Reach 75 Cases Worth $130 Billion in Two Months
Photo by Taylor Vick on Unsplash

In the first quarter of 2026, at least 75 data center construction plans in the U.S. were blocked or delayed, with a total project value reaching approximately $130 billion. All of these projects were thwarted by opposition from local residents and environmental groups.

According to data from the research firm Data Center Watch, the number of data center projects blocked in Q1 2026 already matches the total number blocked in all of 2025. This figure indicates a rapid expansion of anti-construction movements.

Over Half of Residents Oppose

A survey conducted by polling firm Ipsos at the end of 2025 found that about half of U.S. respondents said they “do not want a data center built near their home.” However, a follow-up survey a few months later showed that share had risen to 70%. This highlights a sharp increase in residents’ aversion to data centers in a short period.

Residents’ main concerns are threefold: rising electricity rates, high water consumption, and noise pollution. A single data center can require as much electricity as a small city, putting strain on existing power grids and water infrastructure, which fuels local anxiety.

69 Local Governments Impose Bans

Reflecting these public sentiments, at least 69 local governments across the U.S. had passed moratoriums temporarily halting data center construction as of May 2026. The number of affected areas continues to grow.

The most emblematic case is Seattle, the home base of Microsoft and Amazon. The city imposed a one-year halt on data center construction plans, affecting five new projects. In Maine, a bill was introduced to ban new large-scale data centers statewide until October 2027, but it was narrowly avoided after the governor vetoed it, citing the impact on a specific project.

Bipartisan Opposition Spreads

President Trump has advocated for advancing AI development within the U.S. and has supported expanding data center construction. However, this opposition movement has spread across party lines. While some lawmakers support construction, many are listening to voters and moving to tighten regulations to allow time to assess the impact on communities.

Such moves could become an obstacle for the federal government in its AI competition with China. At the same time, it poses a serious problem for AI companies like Anthropic that struggle to secure computing resources. Rather than accepting environmental destruction or a decline in residents’ living standards, the choice to abandon data center construction is becoming more common across various regions.

Editorial Opinion

In the short term, the rise of this opposition movement is likely to directly constrain the pace of AI development. Data centers are essential for training and inferencing AI models, and delays in new construction will affect the expansion plans of computing resources for companies like Anthropic and OpenAI. With 69 local governments already implementing moratoriums, a scenario where even more regions follow suit in the next three to six months is becoming increasingly realistic.

Over the long term, the data center industry will face a fundamental shift in both location strategy and energy efficiency. Innovations in cooling technology, direct integration with renewable energy, or repurposing former oil and gas infrastructure sites are expected to accelerate toward construction methods with higher social acceptance. Off-grid data centers may also increase to avoid soaring electricity rates.

The question our editorial team wants to pose is how to balance the advancement of AI technology with the sustainability of local communities. Residents’ concerns are by no means irrational; rather, they represent the realization of external costs that have been overlooked until now. Developers must ensure transparent information disclosure and collaboration with communities, while regulators should seek frameworks that do not stifle innovation.

References

Frequently Asked Questions

What are the main reasons data center construction is being blocked?
Residents' primary concerns are threefold: rising electricity rates, high water consumption, and noise pollution. The fact that a single data center consumes as much electricity as a small town places excessive strain on local power grids and water infrastructure, forming the basis of opposition.
How will this opposition movement affect U.S. AI development?
Delays in new data center construction hinder the expansion of computing resources needed for AI model training and inferencing. This is a serious issue for companies like Anthropic that face computing resource shortages and could also become a drag on U.S.-China AI competition.
Are similar movements occurring in Japan?
In Japan, discussions on regulations regarding data center electricity consumption and greenhouse gas emissions are progressing, but large-scale construction blockages like those in the U.S. have not yet been reported. However, given tight power supply-demand balances and rising land prices, the possibility of similar opposition movements emerging in the future cannot be ruled out.
Source: Tom's Hardware

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