New York Joins Other States in Reviewing a Data Center Moratorium

Legislators in at least five additional states—Georgia, Maryland, Oklahoma, Vermont, and Virginia—have introduced bills this year aimed at implementing various forms of temporary halts on data center development. While the initiatives in Georgia, Vermont, and Virginia are spearheaded by Democrats, the proposals in Oklahoma and Maryland have been largely backed by Republicans. These legislative efforts reflect several local moratoriums already in effect: as of late December, at least 14 states had municipalities that had suspended data center permitting and construction, according to Tech Policy Press.

Indicators suggest that the data center sector is beginning to address the growing dissent. Recently, Microsoft, supported by the White House, unveiled a series of commitments to act as a “good neighbor” in the communities where it establishes data centers. Addressing inquiries about the industry’s response to the wave of state-level legislation, Dan Diorio, the vice president of state policy at the Data Center Coalition, an industry association, informed WIRED that it “acknowledges the critical need for ongoing efforts to educate and inform the public about the sector, through community engagement and stakeholder education, which encompasses accurate information regarding the industry’s responsible water usage and our pledge to fund the energy we consume.”

Some states proposing moratorium bills have only a handful of data centers: Data Center Map indicates Vermont possesses just two. However, Georgia and Virginia stand out as major national hubs for data center development, drawing significant public controversy and legislative pushback. This year, over 60 data center-related proposals have been introduced in the Virginia legislature, per Data Center Dynamics, an industry news outlet.

Josh Thomas, a state delegate in Virginia, has been leading the legislative movement to limit the growth of data centers. In his initial legislative session in 2024, the self-identified data center “reformers” in both the House and Senate numbered just three. This count increased to eight in 2025, “and now, it’s 12 or 13,” he notes, with many more lawmakers open to voting for reform initiatives. He emphasizes that his colleagues now “recognize the necessity to negotiate the placement of these facilities.”

Last year, a measure proposed by Thomas requiring data centers to conduct more thorough environmental, noise, and community-impact assessments was approved by the legislature but vetoed by then-governor Glenn Youngkin. The newly elected governor, Abigail Spanberger, a Democrat who advocated for data centers to “pay their own way” during her campaign, appears far more inclined to reconsider this year’s iteration of the bill, which has already passed the House.

“I’m significantly more hopeful that [Spanberger] will approve,” Thomas asserts.

Although Thomas was not involved in shaping the moratorium in the Virginia House, he believes a moratorium on data centers is more likely to succeed in states where the industry has less of an established presence compared to Virginia. Nevertheless, he maintains, “it’s not a bad idea.”