Active local data center bans in the US top 500 after more than 150 towns and counties pass restrictions in July alone

by | Aug 9, 2026 | Latest E-commerce News & Updates

More than 500 local data center bans were active across the US at the start of August, up from over 300 in late June, with 150 or so towns and counties passing temporary or permanent restrictions in July alone, according to Shane Burke’s analysis for The Information. Officials have blocked projects over residents’ worries about higher power bills, water use, and noise. Texas Gov. Greg Abbott ordered a pause on new data center construction last week until state authorities audit the strain on utilities, and New York Gov. Kathy Hochul signed an executive order in July that paused approvals for hyperscale projects drawing 50 MW or more, the first statewide moratorium. The Midwest and South hold more than 400 of the active restrictions, though Florida moved fastest in July with 14 of its 23.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

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