Opinion

From New York to Texas, states should respect local control on data centers

At least 16 states are considering limits on new facilities even as localities negotiate deals worth millions

By John Arnold  Fox News

Published August 17, 2026 5:00am EDT

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There are already nearly 4,600 data centers in the United States, and thousands more in the works. In 2025, companies spent almost $400 billion on U.S.-based data centers, with spending trending even higher this year.

From New York to Texas, the backlash is growing. "Leading the nation" read a sign on the podium as New York Democrat Gov. Kathy Hochul introduced a statewide moratorium on hyperscale data centers. Texas followed on Aug. 3, when Republican Gov. Greg Abbott announced a pause on new data center grid connections until state agencies can audit the projects. At least 14 other states are considering similar actions, including Maryland, Michigan, Minnesota, Wisconsin and even Virginia, whose northern suburbs are the data center capital of the world.

These misguided efforts seek to protect residents from data centers by ensuring they miss out on the benefits. Communities that excluded canals and railroads in the 19th century often found themselves bypassed by new economic activity.

TEXAS GOV. GREG ABBOTT........

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