Local US Authorities Block Construction of Over 500 Data Centers

Local authorities in the US are increasingly rejecting data center construction projects, threatening the expansion ambitions of AI companies. According to Tom's Hardware, the number of rejected projects surpassed 500 in July 2026, up from 300 in June. This resistance is bipartisan, with both Democratic and Republican controlled areas blocking projects, notably in Texas and New York, but particularly in the Midwest and South. Voter concerns include noise pollution, higher utility tariffs, and increased water and electricity costs. The Information reports that about three-quarters of rejected projects are in Georgia and Florida. In early August 2026, Texas Governor Greg Abbott announced a moratorium on data center permits, despite Texas becoming a major AI hub. Amazon, via its AWS cloud provider, still hopes to build a data center in Pecos County, Texas, with a natural gas power plant that could emit 33 million tons of CO2 annually. New York banned data centers over 50 MW for a year, while Massachusetts and Nebraska suspended tax incentives. About 70% of Americans oppose new data centers, with protests often peaceful; however, 37 people have been arrested for nonviolent resistance since early 2026, including a Kansas teacher arrested for applauding at a hearing. In June 2026, CNews reported on local opposition to a Blueprint data center in Taylor, Texas, and in April 2026, a councilman in Indianapolis faced gunfire threats.