Environmental Groups Call for Moratorium on Data Centers as EPA Defends AI Expansion
In early 2026, U.S. tech companies committed over $850 billion to data center leases amid growing concerns about the environmental impact of their expansion. Environmental groups like Food & Water Watch are calling for a moratorium on new projects until regulators can assess long-term sustainability and resource use impacts. The EPA has pushed back against these calls, asserting that AI leadership is vital to national security and economic growth while emphasizing its efforts to promote water reuse and air quality standards in data center development. The agency also highlighted the sector's $727 billion annual economic impact and over 4.7 million jobs it supports. Local opposition has already delayed or halted at least 75 projects worth around $130 billion, with Goldman Sachs forecasting a 220% rise in global data center electricity demand by 2030.
Topics: AI infrastructure data centers environmental impact regulation