A growing number of local jurisdictions in the United States have imposed bans or moratoriums on data center construction, sparking concerns about the potential economic and national security impacts amid the global artificial intelligence (AI) competition with China.

As of July 27, 2026, approximately 78 local jurisdictions have enacted such restrictions, with New York being the only state to impose an outright construction moratorium. Fourteen other states, including Florida, Oklahoma, and Georgia, are considering similar measures. Activists have opposed large-scale projects, such as a proposed 40,000-acre AI data center development in Tremonton, Utah, citing concerns over water use, energy demand, and environmental impact.

A study by the Brookings Institution found that the arrival of a new data center in a community correlates with an 11% increase in construction employment and a 22% growth in information sector jobs, including IT services, telecommunications, and software. These findings highlight the economic benefits of data center development.

The debate is framed against the backdrop of a strategic AI rivalry with China. U.S. companies and the Trump administration view AI as a means to enhance prosperity and individual autonomy, whereas China aims to use AI to enforce tighter control over its population and establish global dominance.

The situation has been compared to historical moments such as World War II and the period before Pearl Harbor, where obstructing industrial production would have only benefited adversaries. Critics argue that restricting data center growth today could similarly advantage China in the AI race.

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