More than 230 organizations, including Food & Water Watch, Greenpeace, and Physicians for Social Responsibility, have sent a letter to Congress calling for a nationwide moratorium on new data center construction. They argue that the rapid expansion of data centers, driven by demand for AI and cryptocurrency computing power, is placing heavy burdens on communities, utilities, and natural resources that current regulations don’t address, tells this article from The Verge.
The coalition’s letter frames data centers as a systemic problem. These massive facilities require enormous amounts of electricity and water for cooling, which has coincided with rising utility costs and strained local infrastructure in parts of the United States. Estimates from advocacy groups suggest that by 2028, data centers could use as much water as 18.5 million households do indoors, intensifying competition for scarce resources in drought-prone regions.
Energy use is a core concern. Data centers consume a significant share of grid power, in many places forcing utilities to plan new fossil fuel generation to meet projected demand. Opponents say this trend could increase pollution and greenhouse gas emissions, undermining climate goals at a time when the world is already grappling with heat waves and extreme weather.
Local backlash is growing. Between March and June 2025, around 20 proposed data center projects were delayed or blocked in various communities as residents objected to potential impacts on water, power costs and quality of life. That resistance has surfaced not just in isolated towns but in regional politics, influencing electoral debates in states such as Virginia and Georgia.
The letter urges lawmakers to pause approvals of new data centers until comprehensive federal regulations can be put in place—standards that would ensure energy efficiency, water conservation, and protections for local communities. Advocates believe this would give policymakers time to consider environmental impacts and set clear expectations for future development.
Critics counter that data centers are central to economic growth and technological advancement, but proponents of the pause say unchecked expansion risks long-term environmental damage and higher costs for consumers.