Cities, Citizens Pushing Back On New Data Centers
A Proposal For Civic Engagement
Millions of people are caught in the crossfire between artificial intelligence, climate change and the rising cost of living. It’s a defining moment for humanity and industry. It’s also a critical branding opportunity for the companies involved – especially the hyperscalers. Together, we can help turn the tide in civic engagement and community acceptance. Together, we can optimize equity for stockholders and stakeholders.
In our opinion, the hyperscalers should be at the head of the table in all local, state and national discussions, not data center developers. Furthermore, we propose a very specialized program that serves cities and communities in many ways. It will facilitate visioning, collaboration, communication, resources and recognition to help cities optimize sustainability and resilience. Most importantly, it will build greener cities and smarter cities.
It will help position the hyperscalers as leaders and the voice of reason in the ongoing discussion regarding data centers and their local impact. Coalitions, associations and contractors will play supporting roles as appropriate.
This is an important branding opportunity for Anthropic, Apple, AWS, Google, IBM, Meta, Microsoft, OpenAI, Oracle, Tesla, and other leaders.
These are the companies that communities already know. These are the companies that are driving the demand for data centers. These are the consumer-facing companies that have the most downside in these processes. Put these companies at the head of the table every time. Bring the contractors along as subject-matter experts only. Be the leaders and the voice of reason and eliminate the black boxes and the bureaucracy. Lead this crusade with truth, transparency and better teamwork.
Greener Cities is an international program for civic engagement and inclusion. It’s a dynamic, third-party program that can help showcase the value of AI in municipal environments, while building models for civic engagement and community acceptance.
We can develop a specialized program to help hyperscalers build meaningful, long-term relationships with cities and citizens alike. It’s a chance to help cities optimize sustainability, resiliency and inclusion, while building understanding and support for local data centers (existing and proposed) that are designed, built and operated responsibly.
We are recruiting founding members now. Together, we can optimize transparency, inclusion and impact for all stakeholders.
The Problem
The impacts of climate change are already impacting millions of people around the world with extreme weather, rising energy costs, and vital water supplies under threat. Are more data centers the answer?
The United States has more than 3,000 operational data centers now. More than 1,500 new data centers are in various stages of development nationwide.
They have become a major flashpoint of controversy due to several key environmental, economic, and social concerns. They require immense amounts of electricity to run servers and cooling systems 24/7, straining local power grids and driving up utility bills for neighbors. Traditional facilities use millions of gallons of water for evaporative cooling. Is this the best use of water in drought-prone areas?
Many residents view data centers as exploitation. Nondisclosure agreements with local officials have been common practice. Local resistance is extreme when a company doesn’t provide information to communities before breaking ground on a construction project. At that point, it’s too late for meaningful civic engagement.
Unfortunately, data center companies are employing a variety of questionable tactics to secure local approval for these data centers. As such, some stakeholders are being left in the dark, which is causing suspicion, backlash and delays. Expensive delays.
According to a recent Pew Research Center poll, 60 percent of Americans are not comfortable with the development of new data centers in their back yard.
Fears that data centers will drive up electricity prices, deplete water supplies and take farmland have prompted people across the country to zoning boards and county commissioners to cry foul. Leaders from both parties are calling for state or national moratoriums. That opposition is now an obstacle for an American industry that needs an estimated 1,500 more data centers.
As opposition to data centers grows, the research group Data Center Watch found that grassroots groups blocked or delayed at least 75 datacenter projects worth approximately $130 billion in the first three months of 2026.
Unfortunately, few local communities have the ability to engage their citizens in developing a common vision around this issue. Some need guidance on a collaborative process to achieve consensus. Others need help outlining the spectrum of actions that they can take to cut pollution, save energy, conserve water and promote health and sustainability. Other communities around the world already are in contingency mode and need help mitigating the impacts of climate change on their homes and businesses.
“AI can only fulfill its promise if we build the compute to power it,” said Sam Altman, OpenAI’s chief executive. “That compute is the key to ensuring everyone can benefit from AI and to unlocking future breakthroughs.”
The Solution
Higher electricity costs are Americans’ top concern when it comes to building data centers. Most Americans now believe that data centers raise their electricity bills and deplete the water supply.
Hyperscalers, cities and other critical stakeholders can breathe instant life into a civic engagement program that will promote:
- Civic engagement and inclusion;
- Transparency;
- Best practices to optimize efficiency and productivity within all cities;
- Develop AI for municipal applications ASAP. Help cities optimize operations, minimize their footprint (water, energy, transportation, waste management, risk management, etc);
- Green Job Creation;
- Awards (best AI breakthrough for a city and more);
- Media relations (success stories, crisis management and more);
- Training; and
- Events.
Many community leaders need coaching to bring all stakeholder groups to the table to discuss opportunities, threats, resources, and priorities. They need facts, guidance and resources for optimal urban planning and sustainability. AI is part of the solution and an important part of the future.
Data Center Statistics
Approximately 67 percent of planned data centers are in rural areas, while 87 percent of existing data centers are in urban areas. About 39 percent of planned data centers are in counties that do not have one now.
Virginia (398) and Texas (296) have the most data centers in operation today. California (277), Ohio (166) and New York (148) are next in line.
Most of the planned construction of U.S. data centers will happen in the South and Midwest:
- Virginia (287)
- Texas (170)
- Georgia (141)
- Illinois (123)
- Arizona (86)
Currently, 38 percent of Americans live within five miles of at least one operational data center. These structures are often built in clusters — nearly 90 percent of data centers are within five miles of another one. As a result, a majority of Americans who live near one data center also live near another one.
Another 4 percent of Americans don’t live near a currently operational data center but live within five miles of one that’s planned. That means 42 percent of the population lives close to an existing or planned data center.
The Political Pushback
Democratic New York Gov. Kathy Hochul signed an executive order in July establishing the United States’ first statewide pause on large data center construction, and progressives in Congress have proposed such a moratorium for the nation.
New York became the first state in the nation to enact a statewide moratorium on certain AI data center development projects—marking a significant departure from the local and municipal restrictions that have characterized regulatory responses to date. Others are considering similar action.
While the immediate impact on nationwide data center growth may be limited, the move could mark a change in how states approach the future of AI infrastructure.
Historically, efforts to slow or pause data center growth have occurred at the municipal or county level, often driven by local concerns surrounding energy consumption, land use, water resources, and community impact. New York’s action is notable because it represents the first statewide moratorium of its kind.
The development bears close watching as several other states—including Minnesota, Michigan, Pennsylvania, South Carolina, New Hampshire, and Virginia—are considering legislation that could impose similar restrictions on future data center projects. If additional states follow suit, New York’s decision could become the beginning of a broader regulatory trend rather than an isolated event.
New York’s moratorium might be the first salvo in a broader conversation about how states regulate the AI economy. Growing local opposition to data center projects, combined with increased legislative activity at the state level, has elevated regulatory risk as a key factor in development planning. Industry participants—including data center developers, hyperscalers, and emerging AI infrastructure providers—are closely monitoring state legislative developments as they evaluate where to deploy capital and build new facilities.
In addition to the moratorium, New York Governor Kathy Hochul has indicated plans to pursue repeal of the state’s sales tax exemption for large data centers. Such a change could significantly affect project economics.
For facilities currently under development—or those in the planning stages—the loss of these exemptions could increase costs associated with purchasing critical equipment and construction materials. This includes major infrastructure investments such as long-lead electrical equipment, as well as high-value computing hardware like GPUs and CPUs that are central to AI workloads.
Developers might face both regulatory uncertainty and increased capital expenditures, potentially reshaping investment decisions in the state. New York’s moratorium represents an important milestone in the evolving regulatory landscape surrounding AI infrastructure.
At least twenty-seven states are advancing state data center legislation that requires developers to cover data center energy costs and report usage, with California, Ohio, and Utah already enacting laws that go beyond the federal government’s voluntary Ratepayer Protection Pledge.
On March 4, 2026, in conjunction with the White House, several major data center developers signed the Ratepayer Protection Pledge, committing to cover the full cost of new electric generation resources needed to meet their energy demands. The pledge addresses one of the central concerns driving state legislation, though it does not have a legal enforcement method, and does not appear to have stalled state legislation moving forward.
Maine is poised to become the first state to implement data center construction moratoriums, pausing new projects until November 2027, with several other states and localities considering similar measures despite federal efforts to speed up development.
In July 2025, President Trump issued an executive order to rapidly and efficiently build out data center infrastructure by “easing federal regulatory burdens.” The order applies to data centers requiring more than 100 MW new electricity load, costing at least $500 million to build, or those that protect national security. The order attempts to streamline environmental review and permitting processes, orders the Secretary of Commerce to provide financial support and incentives for qualifying data center projects, and allows the Secretaries of Defense, Interior, Commerce, or Energy to designate other data center projects subject to the order, but does not lay out any criteria to determine which projects qualify.
The order’s reach is limited to federal policies. It does not preempt state permitting requirements, zoning laws, or energy regulations, meaning a data center that meets federal requirements can still face significant state and local challenges. The order does not impact state and local policymakers’ authority over land use or utility regulations.
On social media, Trump urged the U.S. to “let Data Reign.” He stated that data centers bring jobs, lower taxes, and wealth, and warned that stopping them helps China win the AI race. He warned that towns that reject them risk ending up “backwards and poor.”
Project Jupiter and Project Stargate
Project Jupiter—a $165 billion, 2.45-gigawatt hyperscale data center campus in Santa Teresa, New Mexico—is facing intense community pushback, legal battles, and regulatory delays as part of the broader $500 billion Stargate AI infrastructure initiative backed by Oracle, OpenAI, and SoftBank.
Project Jupiter will be a collection of four data centers meant for artificial intelligence training, and it would be among the biggest private investments ever made that could reshape the regional economy around El Paso and Las Cruces.
In Santa Teresa, Project Jupiter’s developers plan to invest $50 billion over the next five years, and the companies will invest up to $165 billion over the 30 years. The deal between the developers and Doña Ana County requires the project to employ 2,500 construction workers and then 750 full-time workers once the facility is operational.
In exchange for not having to pay property taxes on the 1,400-acre campus or gross receipts taxes, BorderPlex Digital said it will pay the county $360 million over 30 years – $12 million annually.
Stack also made a binding commitment to give the county $50 million to fund water and wastewater infrastructure upgrades throughout Doña Ana County. Stack will also give $6.9 million for various community investments in the county, such as new Boys and Girls Club facilities. Despite the investments and progress on some fronts, community resistance is building and stalling further progress on the project.
Oracle has sent a force majeure notice to the developer of Project Jupiter. Force majeure clauses, common in energy and commodities contracts, excuse a party from contractual obligations when events outside its control get in the way. Oracle is not seeking to exit as the campus’s main tenant, according to Bloomberg’s sources. Instead, the notice would allow the company to delay payments should the facility miss its 2028 target to come online.
The notice came as AI data center construction faces growing scrutiny nationally, and as developers take on steep costs to build capacity for customers like OpenAI. Blue Owl Capital, whose unit received the notice, said that “this notice does not change the financial commitments to this multi-year project.”
Still, the notice follows a string of setbacks at the site, many of them tied to its energy supply. The campus, designed to handle 2.45 gigawatts, is meant to run on gas-powered fuel cells from Bloom Energy, which makes a reliable gas supply central to its timeline.
An Energy Transfer pipeline intended to deliver gas to the site has also been delayed nearly six months, to February 1, 2027, after regulators repeatedly denied permits for the line. In August, Bloomberg reported that the pipeline’s route had been changed following those rejections. A separate air-quality permit for the fuel cell system that would power the campus is also pending. The state’s environment department faces a November 23 deadline to decide.
The development has drawn opposition from residents and environmental groups and has become a political flashpoint ahead of the midterm elections. Oracle has responded with a public outreach campaign in the state aimed at winning over the project’s critics, according to Bloomberg.
About Greener Cities
Greener Cities is an emerging division of Crossbow Communications, a Colorado-based corporation. Crossbow has influenced public opinion and public policy around the world. We have promoted best practices in sustainability for more than 30 years.
We helped the National Civic League promote civic engagement across the United States. Not only did we support existing programs, including the All-America City Award, we developed a civic engagement program called the Ambassadors In Education Award. It recognized teachers and principals in public schools that actively engaged with members of their community. MetLife sponsored the awards program in more than 30 cities across the United States.
In response to the growing obstacles to data centers, we propose forming a founders club that consists of hyperscalers and cities. We can collaborate on visioning, planning, budgeting and program management.
Crossbow Communications is an award-winning public affairs and government affairs firm. We specialize in public health and environmental issues. We serve the world.