Data center construction moratorium is gaining steam

More than 230 groups including Food & Water Watch, Physicians for Social Responsibility, and Greenpeace are demanding a pause on the construction of any new data centers in the US until stronger regulations are in place to prevent soaring electricity rates, water use, and pollution.

“The rapid, largely unregulated rise of data centers to fuel the AI and crypto frenzy is disrupting communities across the country and threatening Americans’ economic, environmental, climate and water security,“ the groups say in a letter sent to Congress on Monday.

More communities are finding success in their efforts to block data center construction, with an estimated 20 projects between March and June blocked or stalled this year, according to a recent report. Rising electricity rates, driven in part by AI’s energy demands, became a key election issue in November. Energy companies plan to meet much of that demand with new gas infrastructure that would exacerbate climate change and local air pollution. AI data centers could also guzzle up as much water by 2028 as 18.5 million US households use indoors, Food & Water Watch estimates.