Over 200 Environmental Groups Demand Suspension of New Data Center Projects
A powerful coalition of more than 230 environmental organizations across the United States has formally called for a nationwide moratorium on the approval and construction of new large-scale data centers. Citing alarming trends in energy and water consumption, rising utility costs, and threats to climate goals, the groups argue that the unchecked expansion of data center infrastructure poses an existential threat to communities and ecosystems nationwide.
The push for a federal pause comes amid a surge in data center development driven by artificial intelligence, cryptocurrency, and cloud computing. As tech giants and investors pour billions into new facilities, local communities from Virginia to Minnesota are increasingly pushing back, raising concerns about noise, traffic, environmental degradation, and soaring electricity bills. Now, national environmental leaders are amplifying those local voices with a unified demand: stop new data center projects until comprehensive environmental and social impact reviews are completed.
Why Environmental Groups Are Calling for a Moratorium
The national moratorium call, led by Food & Water Watch and supported by over 230 allied environmental groups, is rooted in a growing body of evidence showing that data centers are becoming one of the most energy- and water-intensive sectors in the U.S. economy.
According to recent analyses, data center energy demand in the U.S. could triple between 2023 and 2028, placing enormous strain on power grids and increasing reliance on fossil fuel generation. At the same time, many new data centers are being built in regions already facing water scarcity, where cooling systems can consume millions of gallons of water per day.
“Communities are already struggling with water shortages and skyrocketing utility costs,” said Wenonah Hauter, executive director of Food & Water Watch. “The sudden, unregulated explosion of the Big Data industry is placing an unsustainable burden on our most precious resources. The only responsible path forward is to halt this expansion and conduct a full, transparent review of the risks.”
The coalition argues that without a federal pause, the U.S. will lock in decades of high emissions, increased fossil fuel dependence, and environmental injustice, particularly in low-income and marginalized communities that often host these facilities.
Local Backlash Meets National Environmental Action
The national moratorium demand is not happening in a vacuum. It reflects a groundswell of local opposition that has already blocked or delayed an estimated $64 billion worth of U.S. data center projects over the past two years.
From Powhatan County, Virginia, where a $3 billion, 300MW data center proposal faced fierce resistance over noise, traffic, and environmental concerns, to Minnesota, where a lawsuit seeks to force environmental reviews of alleged data center projects in Lakeville and North Mankato, communities are increasingly organizing against what they see as disruptive, resource-hungry developments.
At least 142 local activist groups across 24 states are now actively working to block or slow data center construction. Their concerns are often hyper-local: increased noise from cooling systems, loss of green space, higher property taxes, and fears that data centers will drive up electricity prices for residents and small businesses.
But these local fights are now being connected to a broader national narrative. Environmental groups argue that what looks like a local zoning dispute is actually part of a much larger pattern: the rapid, poorly regulated expansion of an industry that is reshaping the nation’s energy future without adequate public oversight.
Data Centers as a National Energy and Climate Flashpoint
Data centers are no longer just a tech industry issue—they are now a central player in the nation’s energy and climate policy debates.
A recent report on U.S. data center growth found that projected energy demand from just 77% of the market through 2030 would require the equivalent of 90% of the world’s global chip production capacity. This level of demand is forcing utilities to undertake massive grid upgrades, often funded by ratepayers, and in some cases, leading to new fossil fuel infrastructure.
Stephen Humes, a veteran energy and project finance partner at Pillsbury, notes that large data centers often represent the single largest customer on a given grid. “It’s like turning on a new city or a new major community to power that hasn’t had power before, but all the power is going to one address,” he said.
To meet this demand, utilities are increasingly imposing special tariffs and minimum contract lengths on data center operators, costs that can ultimately be passed on to consumers. Some developers are even building power plants directly adjacent to data centers—“behind the meter”—to bypass grid constraints, a move that raises further environmental and regulatory concerns.
The environmental coalition argues that this rapid expansion is happening without a coherent national strategy, adequate environmental review, or meaningful public input. They warn that continuing on this path will undermine climate commitments, exacerbate energy inequality, and deepen the climate crisis.
Frequently Asked Questions
Why are environmental groups calling for a moratorium on new data centers?
Environmental groups are demanding a moratorium because of the massive and rapidly growing energy and water demands of data centers, which threaten climate goals, increase reliance on fossil fuels, and strain local resources. They argue that a pause is needed to conduct comprehensive environmental and social impact reviews before allowing further expansion.
How many environmental groups are supporting the moratorium?
More than 230 environmental organizations across the United States have joined the call for a national moratorium on new large-scale data center projects, making it one of the broadest coordinated environmental actions on this issue to date.
What are the main concerns about data centers?
Key concerns include skyrocketing electricity demand that could triple by 2028, massive water consumption for cooling, increased utility bills for residents, environmental degradation, loss of green space, noise pollution, and the risk of locking in decades of fossil fuel dependence.
Have any data center projects already been blocked or delayed?
Yes. An estimated $64 billion worth of U.S. data center projects have been blocked or delayed over the past two years due to local opposition. At least 142 activist groups in 24 states are actively organizing against new data center construction and expansion.
How do data centers affect local communities?
Data centers can significantly impact local communities by increasing demand on power grids (potentially raising electricity rates), consuming large amounts of water, generating noise and traffic, and altering land use. Many communities also worry about property values and the long-term environmental and health impacts of hosting large industrial facilities.
What would a national moratorium on data centers mean?
A national moratorium would temporarily halt the approval and construction of new large-scale data centers across the U.S. until federal agencies can conduct thorough environmental reviews, assess cumulative impacts, and establish clear regulations to ensure that future projects are sustainable, equitable, and aligned with climate goals.