Governments and regulators across the U.S., Europe and Australia are tightening controls on data centre development as the artificial intelligence boom drives unprecedented electricity and water demand.
In the U.S., Pennsylvania Governor Josh Shapiro signed an executive order requiring AI data centres to meet environmental safeguards and secure local approval, effective immediately. The order removes all data centres from the state’s Fast Track permit program and bars state agencies from signing non-disclosure agreements with developers. New York State imposed a one-year moratorium on new data centres using 50 megawatts or more of power, becoming the first U.S. state to enact a full freeze while officials draft environmental impact standards.
Maine’s Governor Janet Mills vetoed bipartisan legislation proposing an 18-month moratorium on facilities using more than 20 MW of power, citing objections to the bill’s failure to exempt a specific project in the Town of Jay. Meanwhile, Monterey Park, California, residents voted to permanently ban data centres at the ballot box by June 2026, responding to public backlash over a planned facility.
In Europe, Amsterdam extended its data centre moratorium until at least 2030, having first imposed a one-year freeze in 2019. The Dutch government’s 2022 hyperscale ban restricts large facilities to two designated locations nationally, though Microsoft secured approval in January 2026 for a project split into three towers, each individually below the size threshold.
Ireland’s grid operator blocked new data centre connections around Dublin starting in 2021 due to grid strain, but lifted the freeze in December 2025, requiring new projects to provide on-site power generation. Australia’s Prime Minister Anthony Albanese announced plans to establish an Office of AI to regulate large data centres, with legislation expected early next year.
Denmark introduced a draft bill prioritizing power grid connections for households, healthcare, industry and renewable energy projects over data centres, backed by 80% of parliament. The move reflects broader concerns over capacity shortages driven by AI infrastructure growth.
