Environmental Groups Call for Moratorium on New Data Centers

A coalition of over 230 environmental and consumer advocacy organizations is urging the U.S. Congress to impose a national moratorium on the approval and construction of new data centers. Citing rapidly soaring energy demand and significant environmental impacts, these groups contend that the unchecked expansion of data centers, largely driven by the AI and crypto boom, threatens communities and national security.

Organizations including Food and Water Watch, Friends of the Earth, and Greenpeace have signed a public letter addressed to members of Congress. The letter specifically calls for a halt to new data center development, highlighting concerns over escalating electricity and water consumption. It states:

“The rapid, largely unregulated rise of data centers to fuel the AI and crypto frenzy is disrupting communities across the country and threatening Americans’ economic, environmental, climate and water security.”

The economic repercussions of data center expansion are already being felt. Multiple studies have linked the arrival of new facilities to higher energy prices in affected regions. A recent survey, commissioned by solar installer Sunrun, revealed that eight out of ten consumers are worried about data centers negatively impacting their utility bills. This concern is amplified by a 13% increase in electricity prices this year alone, marking the largest annual rise in the past decade.

The effects of this growth are expected to be most pronounced in states like Virginia, Pennsylvania, Ohio, Illinois, and New Jersey, which are projected to see the largest increases in data center capacity. Projections indicate that energy demand for data centers is set to nearly triple in the next decade, surging from 40 gigawatts today to an estimated 106 gigawatts by 2035. Much of this expansion is slated for rural areas, potentially exacerbating local resource strains.

Beyond environmental and economic concerns, the groups also connect the proliferation of data centers to broader societal issues stemming from AI. They argue:

“All this compounds the significant and concerning impacts AI is having on society, including lost jobs, social instability and economic concentration.”

The issue of proposed data centers has recently become a flashpoint, leading to public protests. Last week, demonstrators marched outside the Detroit headquarters of utility DTE in Michigan. DTE is seeking approval from the Michigan Public Service Commission to provide electricity for a 1.4 gigawatt data center intended for OpenAI and Oracle. Protestors voiced concerns about the facility driving up electricity bills, excessive freshwater usage, and increased traffic congestion.

In a separate incident last week, three individuals were arrested in Wisconsin during a common council meeting discussing a 902-megawatt data center. This facility is planned as part of the ambitious OpenAI and Oracle 'Stargate' project, further illustrating the growing local opposition to these large-scale developments.