Building an AI data center in the US is getting harder. Not because of engineering constraints, but because communities keep saying no.
As of May 2026, 69 US jurisdictions have imposed restrictions on new data center construction. That includes 50 active moratoriums and four permanent bans, with Wisconsin and California leading the charge. The core complaints are familiar: these facilities devour electricity and guzzle water.
The water problem, mostly solved
Microsoft’s average water-use intensity, or WUE, has dropped from 2.3 liters per kilowatt-hour in the early 2000s to 0.27 L/kWh in 2025. That’s a 90% reduction.
In August 2024, Microsoft launched next-generation data center designs featuring closed-loop liquid cooling systems. These systems reduce evaporative water use to nearly zero. The company says a facility using this technology consumes roughly the same amount of water as a single restaurant annually.
