MultiState Insider

Data Centers

Local Data Center Regulations Gain Ground as State Bills Falter

March 13, 2026 | Morgan Scarboro, Billy Culleton

State data center moratorium bills have been introduced in 11 states this year (14 bills total), but none have passed their originating chamber as lawmakers balance community concerns with economic development priorities. Local data center moratoriums have gained more traction than state-level efforts, with dozens of municipalities across the country temporarily pausing new projects in response to constituent feedback. Data center construction legislation at the state level doesn't follow partisan lines, with both Democratic and Republican sponsors facing similar challenges in advancing moratorium proposals. South Dakota passed legislation that blocks the state from limiting local authority over data centers, effectively shifting decisions about data center regulation to the municipal level. Polling shows most people would oppose a data center built within three miles of their home, explaining why local governments have been more successful than states in implementing construction pauses.