Data Centre Projects Proliferate Despite Public Rejection
The wave of rejection against the construction of artificial intelligence (AI)-based data centres is spreading across the United States. Residents and state governments are increasingly angered by the surge in electricity consumption, massive water usage, and extensive land acquisition by Big Tech companies.
A report by The Information notes that more than 500 jurisdictions in the US have officially blocked or restricted the construction of new data centres. In July 2026 alone, over 150 cities and counties imposed moratoriums, some permanent. Data from Heatmap shows there are more than 530 restrictive local regulations across 42 states, with nearly 190 of these adopted since 1 June 2026. As a result, over 50 data centre projects have been cancelled this year, double the number of cancellations last year.
The opposition has escalated beyond local zoning issues, prompting intervention from state governors. New York Governor Kathy Hochul issued Executive Order 62, imposing a one-year moratorium on discretionary environmental permits for data centres with a capacity of 50 megawatts or more. Meanwhile, Texas Governor Greg Abbott directed state agencies to halt data centre project approvals until an audit is completed.
Protests have sometimes turned chaotic. Throughout 2026, at least 37 residents protesting data centre projects were arrested. Twelve incidents involved police blocking crowds attempting to meet with local officials. In Indiana, a maintenance manager named Pablo Payan, 42, was arrested at a forum opposing an Amazon data centre project in Hobart for refusing to state his full name before speaking. A similar incident occurred in Kansas, where a physics teacher named Lux Claridge was arrested merely for clapping at a town hall meeting in support of opposing a 1,000-hectare data centre project. Claridge was accused of violating a local official’s rule prohibiting finger-snapping or clapping. Residents have voiced deep disappointment with public officials perceived as prioritising Big Tech interests over local welfare and energy supply.
Amidst grid power shortages and public opposition, data centre developers are seeking independent energy sources. AI infrastructure firm Alpha Compute has taken a radical step by signing a deal worth US$55 million to acquire land and gas extraction rights in Pennsylvania. The move aims to build a self-sufficient 200 MW data centre complex equipped with its own gas-fired power plant, bypassing the public electricity grid. CEO Brittany Kaiser told Reuters the facility in northern Pennsylvania is targeted to begin operations in the third quarter of 2027 and can be expanded to generate up to 1 gigawatt of power. This model of integrating data centres with on-site gas production and power generation is becoming a realistic solution as public utilities struggle to meet AI energy demands. Pennsylvania has become a prime target for data centre investment due to its abundant natural gas reserves in the Marcellus Shale, following Amazon’s US$20 billion commitment last year. To mitigate potential public opposition, Alpha Compute stated it has initiated early communication with local communities. The overall development of this integrated data centre complex is expected to require a total investment of up to US$500 million over several years.