Municipalities Shelve 20 Data Centers, Forgoing $41.7 Billion as U.S. Backlash Targets AI Buildout
Updated
Updated · Vox.com · May 18
Municipalities Shelve 20 Data Centers, Forgoing $41.7 Billion as U.S. Backlash Targets AI Buildout
1 articles · Updated · Vox.com · May 18
At least 20 U.S. data center projects were shelved in the first three months of 2026 after local opposition, wiping out $41.7 billion in planned investment, according to Heatmap Pro.
That resistance has spread beyond town halls: Maine lawmakers passed a moratorium before Gov. Janet Mills vetoed it, 12 other states are considering freezes, four municipalities have permanent bans, and Bernie Sanders proposed a national pause on AI supercomputing campuses.
Opponents cite air pollution, water use, noise and higher power bills, though the report says impacts vary sharply by location; water risks are often overstated, while electricity costs and emissions depend heavily on grid mix and regulation.
The lost projects come amid a boom in AI-driven construction, with annual U.S. data center spending rising from $15 billion in 2022 to more than $35 billion in 2025.
Research cited in the report suggests large data centers can still lift local employment by 4% to 5%, wages by 3% to 4%, and tax revenue enough in some places to cut property taxes, making the political fight a tradeoff rather than a clear-cut loss.
As communities reject new data centers, who will power America's AI ambitions?
Can towns host AI's power-hungry data centers without residents footing the bill?
Data centers promise tax windfalls but strain local grids. Are they a blessing or a curse for rural America?
Billions in AI Data Center Projects Shelved: The Backlash Reshaping U.S. AI Infrastructure
Overview
Between 2022 and 2025, U.S. spending on data center construction surged from $15 billion to over $35 billion, driven by AI firms’ growing need for computing power. This rapid expansion of AI infrastructure sparked a strong backlash, as many Americans became concerned about the impacts on their communities and environment. As a result, there has been a historic wave of project cancellations, with numerous AI infrastructure projects shelved and significant investments lost. The main reasons for this reversal include local opposition over resource strain, environmental worries, and new legislative actions aimed at regulating or stopping further development.