# More than 300 US governments have banned or limited data center development since 2023

> Source: <https://cryptobriefing.com/us-data-center-bans-300-since-2023/>
> Published: 2026-06-25 17:45:18+00:00

# More than 300 US governments have banned or limited data center development since 2023

Local opposition has blocked or delayed $64 billion in data center projects, creating a growing headache for crypto miners and AI infrastructure builders alike

The tech industry’s insatiable appetite for data centers has run headfirst into a wall of local government resistance. More than 300 US local and state governments have enacted bans, moratoriums, or restrictions on new data center development since 2023, according to a report from The Information.

That number is staggering. And the financial fallout is even more so: roughly $64 billion in US data center projects have been either blocked or delayed as a result of local opposition over the past two years.

## The scope of the pushback

Of that $64 billion total, approximately $18 billion in projects have been outright blocked, while another $46 billion have been delayed.

As of mid-June 2026, 97 moratoriums remain actively in effect across the country. Another 122 local regulatory actions are being tracked, spanning 38 states.

Cities as different as Tulsa, New Orleans, and Monterey Park, California have all imposed temporary or permanent pauses on data center construction.

The primary complaints driving these actions are energy consumption, the impact on electricity rates for existing residents, excessive water usage, noise pollution, and land use conflicts.

## Why crypto and AI are at the center

The timing of this regulatory wave maps almost perfectly onto two parallel booms: the explosion of generative AI infrastructure and the persistent expansion of crypto mining operations.

Water is the other flashpoint. Data centers use massive cooling systems that can drain millions of gallons annually.

For crypto mining specifically, proof-of-work mining operations consume enormous energy to secure blockchain networks. A data center might employ a few dozen people while consuming power that could serve thousands of homes.

## The regulatory patchwork gets complicated

Not every attempt to restrict data centers has succeeded. Maine’s governor vetoed a moratorium, demonstrating that state-level leadership sometimes overrides local sentiment. New York, meanwhile, has enacted pauses on certain types of facilities, particularly those associated with proof-of-work crypto mining.

Some jurisdictions are trying to find middle ground. Rather than outright bans, they’re imposing conditions: renewable energy requirements, water recycling mandates, noise limits, or community benefit agreements.

## What this means for investors

The $64 billion in affected projects signals that capital deployment timelines in this sector are getting longer and less predictable. Projects that might have broken ground in six months now face 18-month permitting battles, public hearings, and potential moratoriums.

Crypto miners should be paying especially close attention. The industry already went through a version of this with China’s mining ban in 2021, which sent hashrate scrambling to friendlier jurisdictions.

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