Data centers and other large load entities are the issue of the day in the energy regulatory world. The Federal Energy Regulatory Commission (FERC) recently issued a series of tailored “show cause” orders on June 18, 2026, directing the six federally regulated regional grid operators to justify or reform their rules regarding data centers and other large load connections to the electric grid. A nationwide AI Data Center Moratorium Act has been introduced into the House and Senate to pause the construction and expansion of new data centers until Congress can legislate and address the environmental, economic, and safety impacts of AI. The Virgina Supreme Court will soon . Here are just a few of the recent local government actions taken across the country.
Data Center Bans
The June 2, 2026 Special Municipal Election in Monterey Park, California resulted in the passage of a ballot measure to ban data centers in Monterey Park. Measure NDC will “amend[] the City of Monterey Park General Plan to prohibit data centers citywide to protect air quality, drinking water resources and public health; prevent impacts to electricity and water rates.” The measure was added to the ballot after a unanimous vote from the City Council in March and passed with 88.33% of the vote. This outright ban of data centers is the first in the country to be passed by voters. Monterey Park Mayor Elizabeth Yang told LA Public Press, “We’re hoping that our actions here in our little city are going to set an example for other cities that are dealing with similar issues.”
Short-Term Moratoriums
In Denver, Colorado, the Denver City Council on May 18, 2026 unanimously approved a one-year moratorium on new data center development. The moratorium specifically focuses on pausing applications for new zoning permits and site development plans so that the city can draft regulations; data centers that are already permitted in Denver for construction, such as the CoreSite DE3 data center, are not impacted by the moratorium.
On June 24, 2026, Snohomish County Council in Washington also approved an emergency data center moratorium in order to allow the county time to address zoning issues and other forms of regulations. The Councilmember who sponsored the moratorium, Nate Nehring, said that the moratorium is “an opportunity to press pause.” Also in Washington state, the Seattle City Council passed a one-year moratorium on new data centers that use more than 20 MVA. Beyond these cities and counties, there are more short-term bans being passed across the country.
Additional Ballot-Based Approaches
Voters in Port Washington, Wisconsin passed a referendum that requires voter approval of future projects before the city can award tax incentives to data center developers with project costs or a base value of $10 million or greater. Metropolitan Milwaukee Association of Commerce (MMAC) sued its city over the referendum. In Janesville, Wisconsin, voters in the November 3, 2026, election will be asked to vote on a ballot initiative to require voter approval before the city can approve developments greater than $450 million on undeveloped portions of the former General Motors-Janesville Automotive Transport Company site. And on August 4, 2026, Augusta Township, Michigan, voters will cast a vote on a ballot measure to overturn Ordinance No. 2025-02, which rezoned seven parcels of land for a proposed data center.
As voters decide on ballot measures and short-term moratoriums expire, the local regulatory response to data centers will continue to evolve. Developers are responding to the moratoriums by negotiating with residents and pausing data center developments. Given that legislation is advancing or under discussion in 26 states currently, it looks like there will be more data center moratoriums on the horizon.
For more information, please contact Lisa Gast and Sylwia Dakowicz.
Article By DWGP Summer Associate Jackie Dall – UC Berkeley School of Law, May 2027
