Data centers, the backbone of our digital world, are facing a surprising hurdle: growing local resistance. In 2025, the number of canceled data center projects across the U.S. quadrupled, signaling a significant shift in the landscape.
According to research from Heatmap Pro, at least 25 data center projects were axed last year due to community opposition. These projects represented a potential demand of at least 4.7 gigawatts of electricity. To put that in perspective, analysts predict the U.S. data center power demand will reach 106 gigawatts by 2035.
While the raw number of cancellations might seem small, it's a dramatic increase. In 2024, there were only 6 cancellations, and a mere 2 in 2023. What's more, 21 of the 25 cancellations in 2025 occurred in the second half of the year.
One explanation is the sheer volume of data center projects being proposed. The investment is so massive that it single-handedly drove GDP growth in the first half of 2025.
However, researchers suggest the rise in cancellations reflects a growing backlash against the data center boom. They base this on a comprehensive national survey.
Interestingly, the surge in cancellations outpaced other data center growth metrics. For instance, while nationwide data center electricity use grew by about 22% and is forecast to double or triple in the next decade, cancellations due to local opposition quadrupled in the past year, according to researchers.
Currently, according to Data Center Map, there are 3,779 data centers in the U.S., including those planned or under development. Of those, 770 are planned, and at least 99 are facing local opposition.
As the AI frenzy reached its peak, the government and tech companies poured trillions of dollars into building data center infrastructure. But as more data centers came online, communities started feeling the effects.
Data centers are notorious energy guzzlers, straining local power grids and resources. Residents near data centers have reported water shortages and soaring electricity prices. One report showed electricity bills in some areas near data centers jumped 267% in five years.
But here's where it gets controversial... Data centers can also negatively impact community health. A recent study found that people living near EPA-regulated data centers experienced higher levels of air pollution.
The increasingly negative press around these projects has made Americans more aware of the downsides of data centers, potentially fueling local opposition. The ongoing cost-of-living crisis and rising electricity bills only exacerbate these concerns.
The report found that water use was the biggest driver of local opposition, cited in over 40% of contested projects, followed by energy consumption and high electricity prices.
Some experts warn that the strain on local grids could lead to blackouts, particularly in areas with a high concentration of data centers. This is a real concern, as demonstrated by the 246 deaths during the 2021 winter power shortage in Texas.
Heatmap's review suggests that approximately 40% of data centers facing sustained local opposition are eventually canceled. Peter Freed, Meta's former director of energy strategy, estimates that only about 10% of currently planned projects will be completed.
And this is the part most people miss... This opposition is prompting policy changes. Minnesota passed laws to limit data centers' energy and water use. New York is considering a program to make data centers pay more for electricity. Also, in December, over 250 environmental organizations called for a moratorium on new data centers.
Surprisingly, most of these project cancellations occurred in red states and counties that voted for Trump in the 2024 election. This could be a sign of a political shift.
The shifting sentiment around data centers may be impacting the political landscape. In the November 2025 elections, a Democrat won a traditionally Republican seat in Virginia by focusing on the burdens of data centers.
Trump seems to be feeling the pressure. He stated that he wants to prevent Americans from paying higher electricity bills due to data centers. Microsoft quickly responded with a five-point plan to minimize the local impact of its data centers.
What do you think? Is local opposition to data centers justified? Do you foresee this trend continuing, or will the demand for data centers outweigh these concerns? Share your thoughts in the comments below!
