Data centers face a growing wave of regulatory backlash across the United States as cities and states move to restrict new construction in response to mounting public concerns about energy consumption, water use, and rising utility costs. Seattle and Denver have enacted one-year moratoriums on new data center development, while Maine’s governor vetoed what would have been the nation’s first statewide ban, even as local communities in the state pursue their own restrictions.
Seattle’s city council committees unanimously passed a one-year moratorium on June 3, 2026, making the city the largest U.S. jurisdiction yet to enact such a ban. The full council vote is expected to follow on June 9. The moratorium targets data centers using more than 20 megavolt-amperes of power and comes after four companies proposed building five large facilities that would collectively consume roughly one-third of Seattle’s average daily electricity demand, according to The Guardian.
The proposed Seattle data centers prompted intense public opposition. During a May 20 city council hearing, more than 50 residents spoke in favor of the moratorium while none spoke against it, according to GeekWire. Residents expressed concerns about climate impacts, noise and air pollution, rising utility bills, diminished water supplies, and environmental justice. One council member received more than 10,000 emails from local residents supporting the ban, according to The Guardian.
Seattle’s moratorium reflects broader national sentiment. A March 2026 Gallup survey found that seven in 10 Americans oppose the construction of data centers for AI applications in their local area, with nearly half strongly opposed, according to GeekWire. Tech workers in Seattle—home to Microsoft and Amazon—have been particularly vocal, with employee groups like Amazon Employees for Climate Justice organizing against the facilities.
Maine’s Veto and Competing Measures
Maine’s legislature passed a temporary moratorium on data centers larger than 20 megawatts, making it the first state to do so, but Governor Janet Mills vetoed the bill (LD 307) on April 24, 2026, according to multiple sources including The New York Times and TechCrunch. Mills said she supported a moratorium in principle but vetoed the legislation because it lacked an exemption for a specific project, according to Thompson Hine LLP.
Despite the state-level veto, local Maine communities have taken action. Westbrook and Brunswick both passed moratoriums on data center construction, according to a June 6, 2026 YouTube report from CBS 13 News. The Maine legislature also advanced LD 713, which would exclude data centers beginning operations on or after August 1, 2026 from certain state tax incentives, according to Good Jobs First.
Denver City Council unanimously approved a one-year moratorium on May 18, 2026, which took effect May 21, according to the Denver Post and Axios. The moratorium pauses permits for new data center construction while the city develops new zoning and development standards. Denver Mayor Mike Johnston had called for the moratorium in February 2026 as opposition to the AI-driven construction boom grew, according to Colorado Newsline.
The backlash reflects genuine concerns about data center impacts. Data centers require constant large volumes of water for cooling electronics and consume significant electricity, often running 24/7. A coalition of more than 230 environmental groups demanded a national moratorium in December 2025, citing rising energy costs, water use, and climate impacts, according to Inside Climate News and The Guardian. At least 16 data center projects worth a combined $64 billion have been blocked or delayed due to local opposition, according to The Guardian’s December 2025 reporting.
Seattle’s approach includes directing city utilities to examine water and electricity usage and recommend policies that shield customers from cost increases, with deadlines of July 1 and October 30, 2026, according to GeekWire. The city is also weighing a framework for voluntary data center agreements that could address noise, heat, air and water pollution, workforce protections, and direct funding toward affordable housing and childcare.
Sources
- The Guardian — Seattle moratorium passage, environmental and public concerns, national backlash context
- GeekWire — Seattle public hearing details, Gallup survey on public opposition, city council measures and deadlines
- The New York Times — Maine governor veto date and bill details
- TechCrunch — Maine moratorium bill as first statewide ban attempt
- Thompson Hine LLP — Maine governor’s veto rationale
- CBS 13 News — Westbrook and Brunswick moratorium passage
- Good Jobs First — Maine LD 713 tax incentive exclusion
- Denver Post — Denver moratorium approval and effective date
- Axios — Denver moratorium timeline
- Colorado Newsline — Denver mayor’s February moratorium call
- Inside Climate News — Environmental groups’ national moratorium demand and data center impacts
