U.S. cities are imposing bans on AI data centers due to concerns over water usage and energy costs, with Austin leading the charge.
U.S. Cities Respond to Water Concerns with Data Center Restrictions
In light of increasing worries over water usage, energy costs, and land utilization, various cities across the United States are implementing bans or temporary halts on new AI data centers. Austin, Texas, recently joined this movement, with its City Council unanimously voting to begin drafting regulations that may limit or prohibit the development of new data centers.
This decision was influenced by a study conducted by Ceres, which assessed the water consumption of power plants that supply electricity to data centers in several states, including Virginia, Texas, and California. The findings revealed that these plants collectively consume about 3.4 trillion gallons of freshwater annually, a volume that exceeds California's urban water demand.
Kristen James, a senior program director at Ceres, noted that around 66% of the power plants in the studied states experience medium to high levels of water stress. The report emphasizes the significant water drawn from various sources for electricity generation, with a notable portion lost to evaporation and other processes.
Austin officials are now tasked with revising the Land Development Code to establish definitions and protective measures for data centers, with a review of the ordinance's initial phase scheduled for December.
Public Citizen highlighted the contrast between local initiatives and state responses, criticizing Texas officials for their insufficient actions. Kaiba White, a climate policy expert from the organization, remarked that while state measures remain largely symbolic, local leaders are taking decisive steps to protect their communities.
Following Austin's example, other U.S. cities are also taking action. San Marcos, Texas, has prohibited data centers under its zoning laws, while Durham, North Carolina, and Cave City, Kentucky, have enacted moratoriums. Jersey City, New Jersey, has recently banned data centers as the primary use of industrial land. This growing opposition has led to protests, with 37 arrests reported in 2026 alone during demonstrations against data centers.
The movement is also impacting state legislation; Maine's lawmakers attempted to introduce a statewide moratorium on large data centers, though Governor Janet Mills vetoed it. Meanwhile, Pennsylvania is imposing new requirements for large data centers, including annual reporting on their water and energy consumption. Protests against AI data centers have gained momentum, as evidenced by a gathering of around 200 demonstrators outside the San Francisco offices of major AI firms in March, advocating for a halt to advanced AI development.
