U.S. Data Center Opposition Blocks $68B In Q2 Projects

Data center opposition is adding up to tens of billions of dollars worth of lost causes for developers and the broader industry.

Between April and June, at least 45 projects valued at nearly $68B combined were blocked or delayed, according to a Data Center Watch report. The developments accounted for more than half of all new large-scale data centers tracked by the research firm during the second quarter.

A red sign with "No Data Center" and a QR code is mounted on a gatepost by a field with a distant barn under a clear sky.
A sign protesting a proposed data center in Mason County, Kentucky

That follows at least 75 projects, worth approximately $130B, impacted in the first quarter. 

The research firm said the number of aborted or blocked projects is a result of growing grassroots efforts implementing a successful regulatory playbook. Opposition has become more local and project-specific, increasingly targeting permitting, infrastructure and individual policy decisions. 

Nearly every state has increased data center oversight. So far this year, 30 statehouses introduced or adopted legislation, resolutions or executive actions addressing project siting, infrastructure cost-sharing, or electricity and water constraints, according to Data Center Watch.

That includes some of the nation’s largest data center hubs, once considered havens for development. Last week, Virginia’s Loudoun County, home to more than 250 data centers, directed staff to prepare a 12-month moratorium on new project applications. 

In the first three months of 2026, the number of active opposition groups more than doubled from 2025, according to Data Center Watch. More than 840 groups have been established in every state except Hawaii. 

"New groups continue to emerge, opposition is appearing across a wide range of states and jurisdictions, and online petition signatures continue to grow," Data Center Watch lead analyst Miquel Vila told Bloomberg.

The number of petition signatures collected in the first quarter alone was nearly equal to those gathered in the second half of 2025. 

Nearly 600,000 signatures were collected in a fight over a 69K SF data center next to the Nashville Zoo. The city imposed a moratorium on data center construction, which is now being contested in court by DC Blox, the project’s developer. 

Efforts have also accelerated on the federal level. A bill aimed at limiting data center-driven electricity cost increases passed to consumers is making its way through Congress.  

Data Center Watch said it expects data center-related issues to become a flashpoint in upcoming national elections. Republicans and Democrats have both backed away from supporting new projects as backlash has grown. 

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Related Topics: Data Center Watch , DC Blox , Miquel Vila
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