Local resistance is derailing America’s data-center boom at record speed, with at least 25 projects scrapped in 2025 alone.
At a Glance
- 25 U.S. data-center projects canceled in 2025, up from six in 2024
- Canceled sites would have drawn 4.7 gigawatts, equal to powering 4.7 million homes
- Water worries topped complaints, cited in 40 % of contested proposals
- Why it matters: Your next electric or water bill could spike if a data center moves in next door
The surge in cancellations-21 in the second half of the year-outpaces every other growth metric, according to intelligence platform Heatmap Pro. While nationwide data-center electricity use rose 22 %, local opposition-driven cancellations quadrupled.
Communities Just Say No
Residents aren’t waiting for regulators. Armed with concerns over water shortages, soaring power bills, and air pollution, grassroots groups have challenged 99 of the 770 planned centers tracked by Data Center Map.
Heatmap’s review shows that when opposition stays vocal for months, about 40 % of projects die. Peter Freed, Meta’s former director of energy strategy, told Heatmap he expects only one in ten proposed centers to reach completion.
The Price Locals Pay
People living within a mile of EPA-regulated centers breathe air dirtier than the national average, an Environmental Data & Governance Initiative study found. A September Bloomberg report put the price hike in perspective: electricity bills near data hubs jumped 267 % over five years.
Water use dominates complaints, appearing in two out of every five contested projects. Energy drain and higher utility rates follow close behind. Grid strain can push systems past capacity, raising the specter of winter blackouts like the 2021 Texas crisis that left 246 people dead-yet Texas saw zero cancellations this cycle.
Political Shockwaves
Even deep-red counties are rejecting the gold rush. Most 2025 cancellations landed in Kentucky and Indiana counties that voted for President Trump, undercutting the pro-buildout consensus.
The issue flipped a Virginia seat in November’s election when a Democrat ran on data-center burdens. Trump responded Monday on Truth Social: “I never want Americans to pay higher Electricity bills because of Data Centers,” adding his team is “working with tech companies like Microsoft to make major changes.”
Hours later Microsoft unveiled its “Community-First AI Infrastructure” five-point plan to lessen local impact.
States Step In
Lawmakers are taking cues from constituents:
- Minnesota passed statutes capping data-center energy and water use
- New York Gov. Kathy Hochul will propose an “Energy NY Development” program Tuesday, forcing centers to pay premium electricity rates
- 250+ environmental groups asked Congress in December for a moratorium on new builds
By the Numbers
| Metric | Figure |
|---|---|
| U.S. data centers (planned, under dev, operating) | 3,779 |
| Planned projects | 770 |
| Contested projects | 99 |
| Forecast U.S. data-center demand by 2035 | 106 GW |
| Canceled 2025 capacity | 4.7 GW |
Despite trillions in public and private investment, the backlash shows no sign of cooling. For residents, the math is simple: every canceled center is one less drain on their water, watts, and wallets.
Key Takeaways
- Community resistance is now the #1 killer of new data centers
- Water worries trump all other local concerns
- Red-state cancellations signal a bipartisan shift against unfettered builds
- Expect tighter state rules and higher corporate promises in 2026
