Overview
- Voters in a wide set of local referendums overwhelmingly approved limits, bans, or moratoriums on new data centers in the Nov. 3, 2026 midterm elections, with only one recorded local vote backing a project.
- Multiple Democratic victors who campaigned on tighter controls won key gubernatorial and legislative races, increasing the likelihood that state executives and lawmakers will pursue moratoria and tougher siting rules.
- Congress is preparing a bipartisan measure that would speed energy approvals while forcing large data centers to bear more of the cost of grid upgrades, a move that could both accelerate some projects and raise their operating costs.
- Industry and local leaders are publicly pushing greater transparency, cost‑sharing and community benefits as developers reassess sites and as lenders and investors grow more cautious about financing new hyperscale builds.
- Background pressures driving the fight include a DOE estimate that data centers used 4.7% of U.S. electricity in 2024 and could approach 11.8% by 2030, widespread state incentives in at least 38 states, and sharp local concerns about bills, water use, noise and limited local jobs.