51ÉçÇø

Data Center Watch report claims that $64 billion worth of American data center projects were threatened during the last two years.

Data center growth in the U.S. has skyrocketed in recent years. According to a report by the International Energy Agency, data centers are set to consume 

But that rapid growth has also encountered resistance from community and environmental groups.  by data center research firm  claims that "$18 billion worth of data center projects were blocked, and another $46 billion of projects were delayed over the last two years in the face of opposition from residents and activist groups."

Data Center Watch is funded by 10a Labs, which provides research and analysis for artificial intelligence companies and U.S. tech firms. The organization's report, compiled using a combination of AI tools (large language models) and human analysts, states that there are at least 142 activist groups across 24 states that are organizing to block data center construction and expansion. 

The report does not directly attribute all data center project cancellations or suspensions to these groups, however. In many cases data center projects . Several large projects listed in the report as being blocked or canceled were also not opposed by local groups. Instead, these were cases where the "company submits a new proposal with similar characteristics in a different but nearby location after withdrawing a previous project." 

Still, the Data Center Watch report details local political opposition to data center projects across the U.S., including: 

• Cascade Locks, Oregon, where voters recalled two Port Authority officials in June 2023 for supporting a $100 million data center project from Roadhouse Digital. Following the recall election, the new board canceled the data center project in July 2023.
• Warrenton, Virginia, where residents voted out all town council members who supported Amazon's proposed data center in the November 2024 election. The newly elected council, composed entirely of project opponents, now has the mandate to block the data center. 

The report also notes other project opposition in Virginia, which has one of the largest concentrations of data centers in the U.S. In that state, Prince William County delegate Josh Thomas recently sponsored a bill focused on data center reform, . The bill would have required data center site applicants to assess potential project risks to water and agricultural resources, parks, historic sites, and forestlands. The bill was inspired by complaints from Virgina residents about data center noise and environmental effects.

Virginia Gov. Glenn Youngkin vetoed HB1601 on May 2, saying . This development could point toward an increasingly complex landscape for project developers, who may end up navigating a variety of specific regulatory and legislative rules even within the same state. For example, recently revoked by-right use for data centers from its zoning plan, meaning all new data center proposals will require discretionary approval.

The importance of due diligence for data center development 

As data center regulations continue to evolve, developers can benefit from diligently assessing the impacts of their projects before breaking ground — and thinking holistically across the total lifecycle of a data center, from site selection and permitting to commissioning, operations, and maintenance to impacts on the surrounding environment and even decommissioning. Conducting a detailed assessment of each phase of a data center's development and intended operational life can support early, informed decision making that promotes long-term success; for example, choosing a site that optimizes efficiency, costs, and scalability; securing permits that support the energy demands of the data center; and deploying advanced modeling to simulate aspects like design and construction to help identify issues and failure scenarios pre-build. 

Working collaboratively with local governments and other entities to understand both compliance and any issues arising from local opposition is also important. Data centers typically take several years to develop, with intended lifespans of 30-50 years once in operation. Understanding how concerns like noise, carbon emissions, water and energy consumption, etc., may affect residents can enable proactive communications and solutions — e.g., transparent reporting, reciprocal use of equipment-generated heat to warm surrounding water and facilities — that help build positive relationships.