The fight over data centers is no longer just playing out in local zoning meetings or state legislatures. It has now reached Congress, where lawmakers from both parties are stepping into a debate that is quickly becoming one of the more politically charged development issues in the country.
What makes the issue unusual is the alignment it is creating. In communities across the U.S., opposition to data center projects is drawing support from both Republicans and Democrats, often for different reasons but with the same outcome—resistance. Concerns range from rising electricity costs and heavy water usage to noise, land disruption and the broader transformation of quieter areas into industrial hubs.
Local Pushback Spreads Nationwide
That resistance is no longer isolated. Organized opposition groups have now formed in 49 states, a sign of how quickly sentiment has shifted as data center development accelerates.
The impact is already showing up in project pipelines. According to Data Center Watch, at least 75 projects valued at $130 billion were blocked or delayed between January and March of this year alone.
Lawmakers are taking notice. More than 300 data center-related bills were introduced in just the first six weeks of 2026, reflecting how rapidly the issue has moved up the policy agenda.
Congress Steps In
With pressure building at the local level, federal lawmakers are starting to weigh in, offering a mix of proposals aimed at reining in some of the industry's impacts—particularly around energy use and cost allocation.
Among Democrats, the proposals include the No Harm Data Centers Act, the Stopping Hikes in Electricity from Large Loan Demands and the Data Center Transparency Act. Republican lawmakers have introduced the Local Control Protection Act and the Ratepayer Protection Act.
There is also some bipartisan overlap. U.S. Senators Josh Hawley and Richard Blumenthal have teamed up on the Guaranteeing Rate Insulation from Data Centers Act, signaling shared concern over how energy costs tied to these facilities are passed along to consumers.
Other efforts go further. Sen. Bernie Sanders has introduced legislation "to impose a moratorium on the construction of new data centers until legislation is enacted that safeguards the public from the dangers of artificial intelligence."
Separately, Sen. Jon Ossoff has asked the Federal Energy Regulatory Commission to examine whether tech companies are actually paying their fair share of the infrastructure and power costs tied to their projects and what happens if demand exceeds forecasts.
States Wrestle With Moratoriums
At the state level, lawmakers are trying to decide whether to slow things down—or stop them altogether, at least temporarily.
According to the National Conference of State Legislatures, 14 states are considering moratoriums on new data center development as policymakers seek a clearer picture of the long-term impacts. So far, though, most of those efforts have struggled to gain traction.
New York is the only state to have enacted a one-year moratorium. Similar proposals have failed in Maryland, Minnesota, New Hampshire, Oklahoma, South Dakota and Wisconsin. In Maine, a bill was vetoed, while Virginia continues to debate its approach. Additional legislation has been introduced in Georgia, Michigan, Pennsylvania, South Carolina and Vermont.
Efforts to scale back tax incentives are running into similar resistance. In Georgia, lawmakers attempted to limit incentives for new data centers, but the governor vetoed the measure.
The Cost Of Incentives
Incentives remain one of the most contentious pieces of the debate, particularly as the scale of foregone tax revenue becomes clearer.
A recent analysis from Good Jobs First found that many states do not fully disclose how much revenue they are giving up. Among those that do, the numbers are substantial. Georgia is projected to lose $2.5 billion in fiscal 2026; Texas, $1.3 billion this year—with the potential of reaching $9 billion by 2030; Virginia, $1.94 billion in fiscal 2025 and Ohio, $1.6 billion during fiscal 2025.
Even so, supporters of data center development argue that the projects are critical to economic growth and digital infrastructure and they are continuing to push forward.
In Georgia, the state Chamber of Commerce has rolled out a Data Center Ready Community Designation to help communities seeking to attract these projects navigate the process.
"We want to make sure that those that do are following the right process, are transparent, and can work with all partners that might be interested," said Chamber President and CEO Chris Clark.
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