Overview
- By July 2026 more than 500 localities in about 39 states had adopted bans, moratoria or strict limits on new data-center development.
- The first quarter of 2026 saw 75 projects worth roughly $130 billion delayed or blocked, contributing to about $228 billion in disrupted investment to date.
- Hyperscale data centers commonly draw 100+ megawatts of power and large volumes of water—on the scale of a medium city—which has raised concerns about grid reliability, higher utility bills and local water supplies.
- Secrecy around site deals, including nondisclosure agreements and code names such as Amazon’s 'Project Blue Marlin,' has deepened mistrust and prompted some companies to drop NDAs and promise greater local disclosure.
- Companies are hedging by diversifying pipelines and building international capacity while political leaders clash over policy, with the president pushing fast expansion and some governors pausing permits ahead of the 2026 midterms.