As of July 15, 2026, a growing number of governments, regulators, and cities globally are freezing, restricting, or banning new data centre construction amid rising concerns about electricity costs, strained water supplies, land scarcity, and local community burdens linked to the AI boom.

In the United States, New York Governor Kathy Hochul enacted a one-year moratorium on data centres consuming 50 megawatts (MW) or more, marking New York as the first U.S. state to impose a full moratorium. During this period, the state's Department of Environmental Conservation will halt issuing new discretionary permits while developing environmental impact standards for data centres.

Conversely, Governor Janet Mills vetoed bipartisan legislation proposing an 18-month moratorium on new data centres using more than 20 MW of power, which would have been the first such measure in the U.S. Mills expressed support for a moratorium in principle but opposed the bill due to its lack of an exception for a specific project in the Town of Jay.

The Town of Jay itself became the first U.S. city to permanently ban data centres via a June 2026 ballot measure, following public opposition to a planned facility. The city had previously imposed a one-year moratorium in 2019 and, in April 2025, barred new data centres or expansions until at least 2030.

Internationally, Ireland's grid operator has effectively blocked new data centre connections around Dublin since 2021 after warnings about grid strain.

In the Asia-Pacific region, Australian Prime Minister Albanese announced the establishment of a new "Office of AI" within the Department of Prime Minister and Cabinet. This office will set common standards, including regulations on the location, power, and water use of large data centres, with related legislation expected early next year.

These actions reflect a global trend of balancing AI infrastructure growth with environmental sustainability and community impact considerations.

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