Coalition Urges Congress to Halt New Data Center Approval Citing Environmental Impact

On December 9, 2025, a coalition of over 230 environmental organizations, including Food & Water Watch, Greenpeace, Friends of the Earth, and Physicians for Social Responsibility, sent a letter to Congress advocating for a national moratorium on the approval and construction of new data centers. The groups expressed concerns that the rapid, largely unregulated expansion of data centers, particularly those supporting artificial intelligence (AI) and cryptocurrency operations, poses risks to economic stability, environmental health, climate change, and water security.

The environmental coalition's letter underscores the substantial resource consumption associated with data centers, highlighting their significant electricity and water usage. The groups argue that without proper oversight and regulation, the continued proliferation of these facilities could lead to increased utility costs for consumers, strain local resources, and exacerbate environmental challenges. They propose that Congress address these issues by enhancing the Federal Energy Regulatory Commission's (FERC) oversight, applying existing federal environmental laws to data center construction, and implementing measures to ensure that data center development does not adversely affect communities and the environment.

Background on Data Centers and Their Environmental Impact

Data centers are facilities that house computer systems and associated components, such as telecommunications and storage systems. They are essential for the functioning of the internet, cloud computing, and various digital services. However, their operation requires substantial amounts of electricity and water, leading to environmental concerns.

In 2023, U.S. data centers consumed approximately 176 terawatt-hours (TWh) of electricity, accounting for about 4% of the nation's total electricity demand. This figure is projected to rise to between 6.7% and 12% by 2028, driven primarily by the increasing adoption of AI technologies. The growing use of powerful GPUs for AI requires substantial energy and cooling resources.

Data centers also have a significant water footprint due to their cooling requirements. A single mid-sized data center can use up to 300,000 gallons of water per day, equivalent to the daily consumption of 1,000 homes. In 2023, U.S. data centers directly consumed about 17 billion gallons of water, with hyperscale and colocation facilities using the majority (84%). Hyperscale data centers alone are expected to consume between 16 billion and 33 billion gallons of water annually by 2028.

Community and Environmental Concerns

The substantial resource consumption by data centers can strain local infrastructure and natural resources, particularly in regions already facing water scarcity. For instance, approximately two-thirds of new data centers built since 2022 have been in water-stressed areas, including Texas and Arizona. This concentration exacerbates existing environmental challenges and raises concerns about the sustainability of such developments.

The environmental groups' letter suggests several policy measures to address the challenges posed by data center expansion:

• Enhanced Oversight: Granting the Federal Energy Regulatory Commission (FERC) more authority to oversee data center development and its impact on the energy grid.

• Environmental Regulation: Applying existing federal environmental laws to regulate data center construction and operation, ensuring compliance with environmental standards.

• Sustainable Development: Implementing measures to ensure that data center development does not adversely affect communities and the environment, such as requiring sustainability assessments and community impact studies.

Industry Response and Sustainability Efforts

In response to these concerns, some technology companies are adopting diversified energy strategies to power AI growth while managing environmental and infrastructure constraints. For example, companies like Meta, Microsoft, and Google remain committed to clean energy, with Meta matching 100% of its power use to renewables since 2020 and Microsoft targeting zero-carbon matching by 2030. They are investing heavily in solar, wind, and co-located renewable and gas facilities to address power reliability and reduce transmission needs. Nuclear power is also back in focus: Google and others are signing long-term nuclear power purchase agreements and investing in small modular reactors (SMRs) and even fusion power for the 2030s.

Policy and Regulatory Considerations

The letter from environmental groups suggests several policy measures to address the challenges posed by data center expansion:

• Enhanced Oversight: Granting the Federal Energy Regulatory Commission (FERC) more authority to oversee data center development and its impact on the energy grid.

• Environmental Regulation: Applying existing federal environmental laws to regulate data center construction and operation, ensuring compliance with environmental standards.

• Sustainable Development: Implementing measures to ensure that data center development does not adversely affect communities and the environment, such as requiring sustainability assessments and community impact studies.

Historical Context and Precedents

This is not the first time environmental concerns have been raised regarding data centers. In various regions, local governments have taken steps to regulate data center development due to environmental considerations. For example, the Malaysian state of Johor announced a halt on approving Tier 1 and Tier 2 data centers due to rising concerns over water usage, highlighting an environmental issue increasingly scrutinized worldwide. Johor, a major tech hub with 51 current data center projects, is shifting focus to only allowing Tier 3 or Tier 4 builds, which use significantly less water due to better design and efficient cooling systems.

Conclusion

The call for a moratorium on new data center construction by environmental groups highlights the pressing need to balance technological advancement with environmental sustainability. As data centers continue to expand to meet the demands of AI and digital services, it is crucial to implement policies and practices that mitigate their impact on natural resources and local communities. Collaboration between industry leaders, policymakers, and environmental advocates will be essential in developing sustainable solutions that support both innovation and environmental stewardship.