US Cities Eye AI Data Center Limits as Study Flags Water Risks
U.S. cities are increasingly limiting AI data center development over concerns about water use, power demand, and land use. Austin, Texas, is the latest to act, with its City Council unanimously voting to draft rules that could restrict or exclude new data centers. The move follows a Ceres study showing power plants serving data centers in seven major states withdraw about 3.4 trillion gallons of freshwater a year, with 66% of those water-using plants facing medium to high water stress. Other cities have already moved ahead: San Marcos, Texas, banned data centers under zoning rules; Durham, North Carolina, and Cave City, Kentucky, imposed moratoriums; and Jersey City, New Jersey, barred them as the primary use of industrial property. The pushback has also reached state legislatures, with Maine considering a moratorium and Pennsylvania adding water and energy reporting requirements.
