US Faces Data Center Surge Amid AI Competition

The global competition in artificial intelligence is driving a significant increase in data centers in the United States. Both lawmakers and local authorities are expressing caution about the rapid pace of new construction. According to the National Conference of State Legislatures (NCSL), legislators in at least 14 states are contemplating bans or temporary halts on new facilities. Critics argue these facilities consume vast amounts of electricity and water, urging a cautious approach to allow leaders to assess long-term impacts. Proponents, such as the Trump administration, argue these data centers are critical for maintaining AI leadership over China.

In 14 states, including municipalities like Monterey Park, California, various bans and moratoriums are either considered or enacted. Other locations such as Georgia and Indiana have existing restrictions. Current efforts aim to limit data center growth, such as Georgia’s proposal to block construction through 2028 and a moratorium on larger facilities in Maine until late 2027, although the latter was recently vetoed. Other efforts in Oklahoma, Minnesota, and New Hampshire have not succeeded thus far.

Legislation in South Carolina aims to restrict local approval of data centers until a statewide oversight framework is established. Pennsylvania lawmakers are considering a three-year moratorium backed by impact studies, according to the NCSL tracking these initiatives.

Currently, over 3,000 data centers operate across the United States, with more than 1,500 in various construction stages, as reported by the Pew Research Center. Most newly planned centers are in rural areas, especially in the South and Midwest, though 87% of existing facilities are in urban settings.

By April, Virginia and Texas led the nation in the number of operational data centers, followed by California, Ohio, and New York.

Some proposed or under-construction facilities are near the Ogallala Aquifer, a crucial groundwater system for U.S. agriculture. A new 438-acre site near Odessa, Texas, construction is set to start next year, and Microsoft plans to purchase about 3,200 additional acres in Wyoming for expansion. Other significant projects are proposed in Natrona County, Wyoming, and San Angelo, Texas.

The Ogallala Aquifer spans eight states and is among the most vital groundwater resources in North America. Decades of water losses have seen depletion rates reaching over 100,000 acre-feet per year, with nearly 27% of stored water gone in some areas.Unlike surface reservoirs, the aquifer recharges extremely slowly, said Sudeep Pasricha, a professor at Colorado State University.

Recharge rates in parts of the Great Plains are often less than an inch per year, much lower than the water extracted for irrigation purposes. Lost water could require centuries to millennia to return in some areas, Pasricha noted.

Contact for this story: Jenni Fink and Sam Wilson at Newsweek.