The booming AI data center industry has been fraught with controversy and growing resistance, with seven in 10 Americans reportedly against constructing them in their area, nearly half of whom were strongly opposed, according to a Gallup poll that was released in May.
[RELATED: More data centers are being proposed in Virginia, here’s what to know about their water usage]
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A report by Data Center Watch reveals that about $130 billion in AI data centers across the U.S. were blocked or delayed in the first quarter of 2026. The study found that from January through March, at least 75 projects nationwide were affected, marking a sharp increase compared to recent years. In fact, it’s the most recorded in a three-month period since the group began tracking in 2023, according to NBC News reporting. For context, within just those three months, the total number and value of data centers blocked or delayed was nearly equal to the total for the entirety of 2025.
Nationwide, including right here in the Commonwealth, the reasoning behind why big tech keeps getting voted down is largely the same. Communities are concerned about higher electricity bills required to cover grid upgrades for hyperscalers like Amazon or Google, and millions of gallons of water needed for cooling, not to mention the potential negative environmental impacts as well. Those in support of data centers, however, argue that the concerns are hyperbolized or based on faulty data that doesn’t reflect the full picture. Proponents also underscore the potential economic benefits that could come from the developments.
Meanwhile, lawmakers from both sides of the aisle introduced more than 300 data center bills in the first six weeks of 2026, and 14 states proposed moratoriums on new construction.
Maine nearly became the first state in U.S. history to impose a statewide data center ban. However, Maine Gov. Janet Mills vetoed a bill passed by the Democrat-controlled state legislature that would have instituted a moratorium for more than a year on data centers above a certain size. She stated that she vetoed the bill because it didn’t include an exemption for a project in the town of Jay, which she says would bring needed jobs to a community that was hit hard after the closure of a local mill.
There has also been a huge surge in grassroots opposition to hyperscale AI data centers across the country. According to the Data Center Watch Report, the number of active opposition groups has more than doubled from 396 at the end of 2025 to 833 by March, now spanning 49 states.
In Southwest and Central Virginia, a plethora of data centers have been proposed, including one of the largest in Botetourt County, which has been at the center of controversy for quite some time. Google officially announced plans to advance the project back in March.
More recently, the Roanoke City Council took action to get ahead of the issue by unanimously passing a new ordinance that sets rules for where and how data centers can be built. City leaders confirmed to 10 News that no data center has been proposed to Roanoke yet, but the new ordinance aims to set the process for if and when that day comes.