Coalition seeks nationwide moratorium on data centers

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A coalition of more than 230 environmental organizations has called for a national moratorium on new data centers, escalating a growing backlash against the rapid expansion of artificial intelligence infrastructure and its strain on energy, water, and climate systems.

According to a report by The Guardian news outlet, major environmental groups including Greenpeace, Friends of the Earth, and Food & Water Watch joined hundreds of local organizations nationwide urging federal leaders to halt new data center construction until stronger safeguards are in place.

The coalition argues that the accelerating buildout of AI data centers is driving up electricity costs, increasing reliance on fossil fuels, and intensifying water scarcity, while offering limited benefits to local communities.

Environmental advocates say resistance to large-scale data centers is no longer confined to traditional environmental circles. “I’ve been amazed by the groundswell of grassroots, bipartisan opposition to this, in all types of communities across the U.S.,” said Emily Wurth of Food & Water Watch.

Wurth said residents question whether the benefits of AI development outweigh the costs. “A lot of people don’t see the benefits coming from AI and feel they will be paying for it with their energy bills and water,” she said.

The coalition points to soaring electricity demand from data centers as a major driver of higher utility costs. Analysts estimate that energy prices have risen by an average of 13% in many parts of the U.S., as utilities scramble to meet growing demand.

To keep up, power providers have increasingly leaned on natural gas, coal, and oil-fired electricity generation, undermining climate goals and adding to emissions, critics argue.

Environmental groups say this trend shifts costs onto residential and smallbusiness ratepayers.

Beyond energy concerns, water consumption has become a central issue in the data center debate. Al-driven data centers generate enormous heat and require continuous cooling, often relying on large volumes of fresh water.

That water demand, environmental groups note, competes directly with municipal supplies, agriculture, and industrial users, particularly in regions already facing drought and groundwater depletion.

The coalition has urged federal regulators and lawmakers to impose a temporary national moratorium on new data center construction until comprehensive standards are established addressing energy sourcing and grid impacts, cost allocation to prevent ratepayer subsidies, water use and wastewater management, and community transparency and siting decisions.