Local counties hitting pause on data centers as Trump seeks to outpace China in AI race
A trend that has left industry representatives unhappy.
Signs against data centers. By Danielle Parhizkaran/The Boston Globe via Getty Images
- Spokane County officials proposed a 9-month moratorium on large data centers to study local impacts.
- Local concerns focus on zoning, water, power demand, health, safety, and environmental effects.
- Industry groups warn moratoriums could push data center investment away from cities like Spokane.
- Other cities are easing approvals, showing a national divide over AI infrastructure growth and community oversight.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
As nationwide protests against data center expansion in the US have already begun, new examples demonstrate the different approaches local governments are taking toward these investments.
For example, on Monday, Spokane County (Washington) Commissioners Chris Jordan and Amber Waldref announced a proposal for a 9-month countywide moratorium on large-load data center construction, The Spokesman-Review reported.
If approved, this would follow the one-year moratorium already passed on data centers with a capacity of more than 25 megawatts within city limits. Moratoriums would give local governments more time to draft rules for data center developments and address possible issues with zoning, siting, power, and water.
During that time, regulators would study the potential effects of data centers on health, safety, the economy, welfare, and the natural environment, and engage with regional stakeholders such as electric utilities, local planning departments, and water purveyors.
Communities are already pushing back against data centers through an online petition and by contacting local politicians directly.
What's more, Avista, a local utility company, had received an offer to build a 500-megawatt data center – which is reportedly equal to half the combined power used by all residential and business customers in Spokane County – before pausing those negotiations.
Spokane is only one of dozens of US cities that have already imposed data center moratoriums, a trend that has left industry representatives unhappy.
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For example, Dan Diorio, vice president of state policy for the Data Center Coalition, was quoted by the Spokane Journal of Business as saying that Spokane's fast one-year moratorium is sending the wrong message to companies considering Spokane for future investment, and that the industry can simply take Spokane out of the conversation.
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Meanwhile, elsewhere, data center builders are being met with more favorable but seemingly less transparent policies. Richmond BizSense reported that changes to Petersburg's zoning code have made approval easier and largely public-hearing-free for by-right projects, meaning that projects like NuVu's can bypass council votes and public hearings entirely. This is in contrast to how Menlo's and Warrenton's projects, which needed re-zoning, went through a public process.
As reported by Cybernews, Donald Trump is seeking to outpace China in the AI race, pushing the rapid expansion of the data center industry – a push that brings investment and new jobs but, at the same time, collides with local zoning, water, and power capacity, among other issues affecting local communities.
