QQQ•QQQ•Governments in the U.S., Europe and Australia are tightening or proposing restrictions on data-centre development over electricity demand, water use and environmental concerns. Measures include a one-year construction moratorium in New York and new rules prioritising households and essential services for Danish grid connections.
Pennsylvania requires AI data-centre developers to meet environmental and transparency safeguards and secure local community approval, while removing data centres from its fast-track permitting program. Texas has paused approvals through its grid interconnection process and will require developers to provide more information on power demand, water use, tax incentives, ownership and local impacts. New York imposed a one-year construction moratorium on data centres using at least 50 megawatts; Maine’s governor vetoed a proposed 18-month moratorium.
Amsterdam barred new data centres and expansions until at least 2030, while the Netherlands limits hyperscale facilities to two designated locations. Ireland’s freeze on new data-centre connections around Dublin ended in December 2025, with new connections now required to bring on-site power generation. Denmark adopted legislation giving data centres the lowest priority for grid connections, and Portugal is preparing rules requiring renewable power and cooling systems that do not compete with household and business water supplies.
Australia plans to establish an Office of AI to manage AI standards, including rules for large data centres covering location, power and water use, with legislation due early next year. In June 2026, residents of Monterey Park, California, voted to permanently ban data centres.
