The U.S. is tightening the AI data centre construction. The concerns of local governments and communities are concentrated on freshwater supply, electricity costs and land use. As the scope of the project continues to expand, local resistance around data centres is gradually extending from the urban planning level to state-level legislation.
Research points to water pressure.
This round of discussions is related to a study published by Ceres. Studies have been conducted on water collection by power plants that supply power to data centres in Virginia, Texas, California, Illinois, Georgia, Ohio and Arizona. The seven states have about half of the data centres in the United States.
According to the study, these plants receive about 3.4 trillion gallons of fresh water per year, or about 10.4 million acre feet. This is larger than the average annual urban water demand in California, and is about 12 times the total water use in Los Angeles, Phoenix and Washington.
Ceres also indicated that about 66 per cent of the power plants that use water resources in the above-mentioned states are under medium to high water pressure. Studies have been conducted on the amount of water extracted by power plants from sources such as rivers, reservoirs, some of which will flow back, but water consumed by processes such as evaporation cannot be reused immediately.
Austin's kick-starter.
The City Council of Austen, Texas, has voted to promote the restrictions. Local officials will then draft amendments to the land development code, clarify the definition of the data centre and set the conditions for it. The first phase of regulations is expected to be submitted for consideration in December.
The non-profit consumer rights organization Public Citizen stated that the vote contrasted with the previously limited response of the Texas State Government. The organization believes that local governments are responding more directly to community concerns about large data centres.
Multiple land closures or suspensions
Austin is not an example. In June, San Marcos de Texas banned the landing of data centres under zoning regulations. A moratorium was imposed in Durham, North Carolina, and Kev, Kentucky. The main use of data centres as industrial land was also banned earlier this month in Jersey, New Jersey.
According to the article, in early 2026, at least 75 proposed projects faced local opposition, involving a total investment of approximately US$ 130 billion. Protests around the AI data centre have also increased, with at least 37 people detained since 2026.
State action is starting to increase.
Disputes have also entered the state council level. Members of Parliament in Maine passed a state-wide moratorium on large data centres in April this year, but Governor Janet Mills subsequently vetoed the bill, one reason being that the bill did not exempt Jay from a proposed project. Since then, she has established an advisory committee to study data centre policies.
Pennsylvania introduced new requirements for large data centres earlier this month, including annual disclosure of water and energy data. Meanwhile, street protests continued around the expansion of AI infrastructure. In March, some 200 demonstrators gathered outside the offices of OpenAI, Anthropic and XAI in San Francisco, demanding a moratorium on the development of a stronger AI system.