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Communities pause data center projects amid AI, power and water concerns

States and localities are imposing temporary pauses on new data center construction to study effects on electricity, water and surrounding neighborhoods.

Published Jul 6, 2026, 10:43 AM EDT | LehighValleyLive

As demand for artificial intelligence and cloud computing continues to fuel a nationwide boom in data center construction, a growing number of states and local communities are moving to slow or temporarily halt new projects. Lawmakers and local officials say the pauses are intended to give governments time to study the impact these massive facilities could have on power grids, water supplies and surrounding neighborhoods before additional development moves forward.