Growing AI demand fuels data center surge nationwide
The rapid expansion of artificial intelligence and cloud computing has triggered a nationwide surge in proposed and planned data centers, forcing states, cities, utilities and regulators to confront difficult questions about electricity demand, grid capacity, environmental impacts, and public transparency.
What began as isolated disputes in a handful of regions has evolved into a widespread challenge stretching from the Midwest to the East Coast and beyond. In many cases, communities face conflicting pressures: economic development promises on one hand, and concerns over rising utility rates, water use, land zoning, and fossil-fuel generation on the other.
As utilities scramble to supply massive new electricity loads — often equivalent to small cities — residents and advocacy groups increasingly demand answers about who pays, how power is generated, and what long-term impacts data centers may impose on existing customers.
Power demand, secrecy and public resistance collide
A recurring theme in data center disputes is limited public disclosure. In several states, residents and watchdog groups say utilities and regulators have failed to fully reveal anticipated electricity demand tied to large-scale projects, even as ratepayers could shoulder future infrastructure costs.
At the same time, local governments increasingly turn to moratoriums, zoning delays and studies to slow development amid rising public pressure. Federal regulators are also being pulled into the debate as questions emerge about how data centers connect to regional transmission systems and whether co-located power plants should bypass traditional grid oversight.
Recent data center developments across the U.S.
The following developments illustrate how widespread — and contentious — the data center buildout has become:
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A Wisconsin environmental group filed a lawsuit against state regulators for denying an open-records request after officials refused to disclose anticipated energy demand from a Meta data center. (Wisconsin Public Radio)
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As controversy surrounds a data center project near Ann Arbor, developers proposed another hyperscale facility in southeast Michigan spanning 1.8 million square feet. (Crain’s)
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Residents in southeast Michigan are urging local officials to impose a moratorium on data centers as multiple proposals accumulate. (Planet Detroit)
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A developer withdrew a rezoning request for a large data center in central Michigan after officials enacted a moratorium following sustained public opposition. (Detroit News)
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Congressional Republicans, particularly in states attracting data center investments, are grappling with local resistance even as President Trump promotes aggressive AI development. (E&E News)
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Staff at the Georgia Public Service Commission unveiled a deal with Georgia Power allowing nearly 9,885 MW of mostly gas-fired generation to supply data centers, triggering protests that led to police removing attendees from a commission meeting. (Atlanta Journal-Constitution, Georgia Recorder)
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The Federal Energy Regulatory Commission is examining how power plants co-located with data centers in the PJM Interconnection region should connect to the grid. (E&E News)
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A proposed data center in a historic mill building in Lewiston, Maine, includes plans for a gas-fired power plant to meet electricity needs. (Maine Public)
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Maryland lawmakers from both parties are preparing to override Gov. Wes Moore’s veto of a bill funding a study on data centers’ impacts on the grid, environment and economy. (Baltimore Sun)
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Three Democratic U.S. senators sent letters to Google, Microsoft, and other tech firms as part of an investigation into whether data center expansion is driving up utility bills. (New York Times)
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Nearly every Group of 20 nation now faces rising grid stress due to surging electricity demand from AI and electrification efforts.
- The queue of large-load data centers and manufacturing facilities looking to connect to the New York grid in National Grid territory has tripled in the past year. (Bloomberg)
A national issue still seeking solutions
What is unfolding across the country reflects a broader reckoning: the infrastructure required to power AI is colliding with regulatory systems, grids and communities that were not built for this pace or scale.
As utilities, lawmakers and regulators navigate these challenges, the growing backlash suggests data center development will no longer move quietly — or cheaply — for consumers.