Authorities in Austin are taking action to restrict the construction of new data centers amid growing concerns regarding their high consumption of water and electricity. This initiative mirrors similar measures already adopted by various cities in Texas, North Carolina, Kentucky, and New Jersey.

A report from Ceres highlights that power plants supplying data centers in seven U.S. states use an estimated 3.4 trillion gallons of freshwater each year. Earlier this year, local opposition affected at least 75 projects, which had a combined value of approximately $130 billion.