230+ Environmental Groups Demand Data Center Construction Moratorium: Industry Response

Dec 10, 2025 Written By Blake Crosley

More than 230 environmental organizations, including Food & Water Watch, Friends of the Earth, and Greenpeace, signed a public letter urging Congress to support a national moratorium on the approval and construction of new data centers, citing rising electricity and water consumption.¹ The coordinated campaign represents unprecedented opposition to data center development, arriving as AI-driven demand pushes the industry toward aggressive expansion. The moratorium request signals growing tension between digital infrastructure growth and environmental sustainability that data center operators must navigate.

The campaign follows projections that planned data center construction will require nearly triple the sector's current electricity demand over the next decade. According to BloombergNEF, by 2035 data centers will draw 106 gigawatts, up from 40 gigawatts today.² The scale of projected growth has transformed what was once routine industrial development into a contested environmental issue with political dimensions.

The coalition's arguments

The environmental coalition raises concerns spanning energy consumption, water usage, and grid infrastructure impact.

Electricity consumption trajectory

Data center energy demand is forecasted to soar nearly 300% through 2035.³ The growth rate exceeds grid capacity expansion in many regions, forcing utilities to delay coal plant retirements or bring new fossil fuel generation online. The environmental groups argue that data center growth directly contradicts climate commitments.

AI workloads drive the acceleration. Training large language models requires orders of magnitude more compute than previous data center workloads. Inference at scale adds sustained power demand as AI capabilities deploy broadly. The groups specifically cite AI as intensifying concerns that already existed for traditional data center growth.

Water consumption

Data centers consume substantial water for cooling, with some facilities using millions of gallons daily. Evaporative cooling, the most efficient approach in many climates, transfers heat to the atmosphere by evaporating water. The consumption competes with agricultural, residential, and ecosystem needs in water-stressed regions.

Drought conditions in western states have already prompted data center water use restrictions. Some facilities have shifted to air cooling or closed-loop systems at efficiency cost. The environmental groups argue that expanded data center development will worsen water stress in regions already facing scarcity.

Grid infrastructure strain

Utility interconnection queues have lengthened dramatically as data center power requests accumulate. In Northern Virginia, grid connection timelines stretch from years to potentially seven years or more.⁴ The queuing reflects both data center demand and renewable energy projects competing for limited grid connection capacity.

The environmental groups argue that data center load growth consumes grid capacity that should support electrification of transportation and buildings for climate goals. Every megawatt serving data centers is a megawatt unavailable for electric vehicle charging or heat pump deployment.

Industry context

The moratorium request arrives amid massive data center investment commitments.

Recent development announcements

AI powerhouse Anthropic unveiled a $50 billion plan to build U.S. data centers with UK-based cloud partner Fluidstack, starting with projects in New York and Texas.⁵ The scale signals continued aggressive expansion despite environmental opposition.

A $15 billion investment in Northern Indiana will add 2.4 gigawatts of power capacity in one of the largest Midwest data center announcements.⁶ CleanArc broke ground on a $3 billion hyperscale campus in Virginia.⁷ Vantage announced a $2 billion investment nearby.⁸

The investment pipeline demonstrates that environmental opposition has not yet slowed capital deployment. Major operators continue committing to multi-year development programs assuming permitting and community acceptance will follow.

Hyperscaler commitments

Amazon raised its capital expenditure estimate to $125 billion for 2025, with CEO Andy Jassy noting capacity is consumed "as fast as we put it in."⁹ Google raised 2025 spending outlook to $91-93 billion.¹⁰ Microsoft plans approximately $80 billion in 2025 CapEx.¹¹

The Big Four hyperscalers collectively expect capital expenditures exceeding $380 billion this year.¹² The spending commitments create powerful momentum for continued development regardless of environmental opposition. Sunk costs and competitive dynamics make slowing development difficult even if operators wanted to.

Potential impact scenarios

The moratorium campaign could affect data center development through several mechanisms even without formal Congressional action.

Permitting delays

Local permitting authorities respond to constituent concerns. Environmental opposition creates political cover for more rigorous permitting review, additional environmental impact requirements, and longer approval timelines. The campaign provides ammunition for local opponents of specific projects.

Projects already in development face less risk than projects in early planning stages. Early-stage projects may encounter heightened scrutiny and additional requirements that extend timelines and increase costs. Site selection increasingly requires environmental and community acceptance analysis alongside technical and economic factors.

Utility interconnection politics

Public utility commissions regulate utility capital investments and rate structures. Environmental groups with utility commission influence can affect data center interconnection priority, cost allocation, and timeline. Utility commissioners responding to environmental concerns may impose conditions on data center connections.

Some utilities have already implemented data center-specific tariffs and interconnection requirements. The moratorium campaign may accelerate this trend, with utilities citing environmental concerns as justification for stricter terms. Data center operators should anticipate evolving utility relationships.

Corporate sustainability pressure

Enterprise customers increasingly evaluate vendor sustainability when selecting cloud providers and data center partners. The moratorium campaign raises visibility of data center environmental impact, potentially influencing procurement decisions. Operators with strong sustainability credentials may gain competitive advantage.

Hyperscaler sustainability commitments partially address these concerns. Microsoft, Google, and Amazon have committed to carbon negative or carbon neutral operations. The commitments provide counternarrative to environmental criticism. However, critics argue that purchased offsets and renewable energy credits don't address local grid and water impacts.

Industry response strategies

Data center operators can respond to environmental pressure through several approaches.

Efficiency improvements

Power Usage Effectiveness (PUE) improvements reduce environmental impact per unit of computing. Modern facilities achieve PUE below 1.2, with some approaching 1.1. Continued efficiency investment demonstrates environmental commitment while preserving growth capability.

Liquid cooling adoption enables higher density with lower PUE. The technology transition already underway for AI workloads also addresses environmental concerns. Operators should accelerate liquid cooling deployment and communicate efficiency benefits.

Renewable energy procurement

Power purchase agreements (PPAs) for renewable energy address carbon concerns though not local grid impact. Renewable PPAs have become standard for major operators. The procurement demonstrates commitment while ensuring long-term energy cost predictability.

On-site generation and storage provide additional options. Solar installations, battery storage, and potentially fuel cells reduce grid dependency. The approaches add cost but address both sustainability and reliability concerns.

Community engagement

Proactive community engagement builds support before opposition mobilizes. Economic benefits including jobs, tax revenue, and local investment provide compelling narratives. Operators should communicate benefits early and address concerns directly.

Introl's network of 550 field engineers support organizations navigating community and regulatory dynamics for data center development.¹³ The company ranked #14 on the 2025 Inc. 5000 with 9,594% three-year growth.¹⁴

Professional deployment across 257 global locations requires community acceptance regardless of geography.¹⁵ Introl helps organizations implement development approaches that address local concerns while meeting business requirements.

Decision framework: navigating environmental opposition

Risk Assessment by Project Stage:

Site Selection Environmental Criteria:

Key takeaways

For data center developers: - 230+ environmental groups coordinated campaign creates nationwide permitting pressure - Projects in water-stressed regions face highest opposition risk - Community engagement before announcement significantly reduces opposition effectiveness

For infrastructure planners: - PUE improvements below 1.2 demonstrate environmental commitment - Liquid cooling addresses both AI density and water consumption concerns - On-site solar and battery storage reduce grid impact criticism

For strategic planning: - Environmental opposition unlikely to stop expansion but will increase costs and timelines - Strong sustainability credentials become competitive differentiator - Geographic diversification to power-rich, water-abundant locations reduces concentration risk

Outlook

The moratorium campaign represents a significant escalation of environmental opposition to data center development. While formal Congressional action remains unlikely, the campaign will affect permitting dynamics, utility relationships, and public perception.

Operators should prepare for a more contested development environment. Early community engagement, aggressive efficiency investment, and strong sustainability credentials provide competitive advantages as environmental scrutiny intensifies. The organizations that address environmental concerns most effectively will face fewer obstacles as the industry continues its AI-driven expansion.

References

Category: Policy & Environment Urgency: High — December 8 campaign launch with immediate permitting implications Word Count: ~1,300