Campaign calls for moratorium on new data centre build
The environmental impact of data centres came into sharp relief in the US at the end of 2025 as environmental, political and community organisations lobbied Congress to impose a moratorium on new data centre development.
More than 230 organisations from states across the country are calling for the ban. In a joint letter to Congress in December, they said: “The rapid expansion of data centers across the United States, driven by the generative artificial intelligence (AI) and crypto boom, presents one of the biggest environmental and social threats of our generation.
“This expansion is rapidly increasing demand for energy, driving more fossil fuel pollution, straining water resources and raising electricity prices across the country.
“All this compounds the significant and concerning impacts AI is having on society, including lost jobs, social instability and economic concentration. The harms of data center growth are increasingly well-established, and they are massive.”
The letter highlighted electricity consumption, “unsustainable water consumption”, greenhouse gas emissions, job losses and “skyrocketing electricity costs” as particularly concerning.
Mitch Jones, managing director of policy and litigation at Food & Water Watch in Baltimore, which is leading the call for a moratorium, told Data Centre: Demand that not only were electricity prices rising sharply as a result of data centre development, but land prices were also increasing, driving up local taxes and affecting farmers.
These combined factors meant it was time for a “much more aggressive approach” from policymakers when it came to the industry. Jones is also calling for a “rigorous” study to be undertaken on the societal impact of data centres and AI.
Has the letter to Congress had any impact? Senator Bernie Sanders subsequently posted a video on YouTube inviting viewers to consider the impact AI potentially has on unemployment.
In the clip, he says: “I will be pushing for a moratorium on the construction of data centres that are powering this unregulated sprint to develop and deploy AI. This moratorium will give democracy a chance to catch up with the transformative change we are witnessing.”
Back in the UK, there is concern among MPs, too. In January, the Treasury Select Committee criticised the Bank of England and the Financial Conduct Authority for taking an overly cautious ‘wait-and-see’ approach to AI regulation, which they argue leaves consumers and the financial system exposed to harm. More than 100 parliamentarians are also calling for tighter regulation of the industry, The Guardian reports.
Others are questioning whether the British government is prepared to deal with the consequences of AI. The Public Accounts Committee highlighted in March 2025 that "sclerotic" digital architecture in government means it is not ready for the impact of artificial intelligence.
These transatlantic concerns about the impact of data centres on society and the environment, and the regulation (or lack of it) when it comes to AI, mean it’s never been more important that data centre developers demonstrate their willingness to tackle issues such as climate change.
For example, Luisa Cardani, head of the data centre programme at TechUK, encourages all data centre members to sign up to the Climate Neutral Data Centre Pact. “We want to ensure the sector is moving toward best practice on energy efficiency measures, water use measures, and other metrics we consider essential,” she says.
Compliance with existing restrictions is also vital. “At the end of the day, data centres respond to consumer and shareholder expectations. The companies that do best are those that have robust reporting requirements in place and show compliance to regulations.” Data centres may also consider using environmentally friendly materials in the design stage or ensuring that where possible they use renewable energy, Cardani says.
However, there are some areas where data centres could positively benefit society but a lack of infrastructure is holding them back, she points out.
"Most TechUK members would be very happy to provide the excess heat they generate to heat homes – the question is, is there a district heat network that will take it?"
More than 230 organisations from states across the country are calling for the ban. In a joint letter to Congress in December, they said: “The rapid expansion of data centers across the United States, driven by the generative artificial intelligence (AI) and crypto boom, presents one of the biggest environmental and social threats of our generation.
“This expansion is rapidly increasing demand for energy, driving more fossil fuel pollution, straining water resources and raising electricity prices across the country.
“All this compounds the significant and concerning impacts AI is having on society, including lost jobs, social instability and economic concentration. The harms of data center growth are increasingly well-established, and they are massive.”
The letter highlighted electricity consumption, “unsustainable water consumption”, greenhouse gas emissions, job losses and “skyrocketing electricity costs” as particularly concerning.
Mitch Jones, managing director of policy and litigation at Food & Water Watch in Baltimore, which is leading the call for a moratorium, told Data Centre: Demand that not only were electricity prices rising sharply as a result of data centre development, but land prices were also increasing, driving up local taxes and affecting farmers.
These combined factors meant it was time for a “much more aggressive approach” from policymakers when it came to the industry. Jones is also calling for a “rigorous” study to be undertaken on the societal impact of data centres and AI.
Has the letter to Congress had any impact? Senator Bernie Sanders subsequently posted a video on YouTube inviting viewers to consider the impact AI potentially has on unemployment.
In the clip, he says: “I will be pushing for a moratorium on the construction of data centres that are powering this unregulated sprint to develop and deploy AI. This moratorium will give democracy a chance to catch up with the transformative change we are witnessing.”
Back in the UK, there is concern among MPs, too. In January, the Treasury Select Committee criticised the Bank of England and the Financial Conduct Authority for taking an overly cautious ‘wait-and-see’ approach to AI regulation, which they argue leaves consumers and the financial system exposed to harm. More than 100 parliamentarians are also calling for tighter regulation of the industry, The Guardian reports.
Others are questioning whether the British government is prepared to deal with the consequences of AI. The Public Accounts Committee highlighted in March 2025 that "sclerotic" digital architecture in government means it is not ready for the impact of artificial intelligence.
These transatlantic concerns about the impact of data centres on society and the environment, and the regulation (or lack of it) when it comes to AI, mean it’s never been more important that data centre developers demonstrate their willingness to tackle issues such as climate change.
For example, Luisa Cardani, head of the data centre programme at TechUK, encourages all data centre members to sign up to the Climate Neutral Data Centre Pact. “We want to ensure the sector is moving toward best practice on energy efficiency measures, water use measures, and other metrics we consider essential,” she says.
Compliance with existing restrictions is also vital. “At the end of the day, data centres respond to consumer and shareholder expectations. The companies that do best are those that have robust reporting requirements in place and show compliance to regulations.” Data centres may also consider using environmentally friendly materials in the design stage or ensuring that where possible they use renewable energy, Cardani says.
However, there are some areas where data centres could positively benefit society but a lack of infrastructure is holding them back, she points out.
"Most TechUK members would be very happy to provide the excess heat they generate to heat homes – the question is, is there a district heat network that will take it?"
