Community opposition to data center projects is intensifying and could increasingly shape where construction goes forward.
Data center construction continues to surge, solidifying its position as a key driver of growth in the nonresidential construction sector.
Opposition at the local level could become a meaningful constraint on site selection amid expanding investment.
On May 12, Hill County, Texas, Commissioners voted 3-2 to approve a moratorium, temporarily halting data center developments while the county evaluates their potential impacts on residents and infrastructure.
Residents voiced concerns about physical, light, and noise pollution from these facilities, as well as the strain their energy demands could place on the local power grid.
However, the moratorium's future remains uncertain. Under Texas state law, counties are prohibited from imposing moratoriums on any type of development, raising questions about the measure's enforceability.
The backlash in Hill County is far from an isolated incident. In April, voters in a small Missouri town took decisive action, ousting half of their city council over a proposed $6 billion data center project.
Similarly, a Gallup poll conducted in March revealed that over 70% of respondents oppose data center construction in their local area, with nearly half expressing strong opposition.
This growing resistance is reflected in data from Interconnected Capital’s U.S. Data Center Moratorium Tracker, which reports 57 active moratoriums across the country, including the one in Hill County.
This marks a significant increase from just one year ago, when only eight moratoriums were in place, underscoring the rapid expansion of opposition to data center developments nationwide.
ConstructConnect projects Texas will continue to see robust growth in data center spending. The Offices category, which includes Data Centers, is forecasted to rise by 63% in 2026 compared to 2025. With over $26 billion in starts anticipated for 2026, shown in the chart above, Offices would represent approximately 30% of all nonresidential building spending in the state. Image and Data: ConstructConnect
Despite mounting opposition, the data center construction boom shows no signs of slowing, with record-breaking spending driven by surging demand for AI and digital infrastructure.
Nationally, data center construction starts approached $80 billion in 2025, nearly tripling 2024’s spending levels. Texas alone accounted for $13.4 billion of that total, ranking as the fourth-highest state for data center investment last year.
[Read the ConstructConnect Data Center Report]
ConstructConnect projects Texas will continue to see robust growth in data center spending. The Offices category, which includes Data Centers, is forecasted to rise by 63% in 2026 compared to 2025. With over $26 billion in starts anticipated for 2026, Offices would represent approximately 30% of all nonresidential building spending in the state.
Despite the sustained surge in spending, the rising tide of local opposition is a trend worth tracking for the construction industry. Growing backlash may soon join power availability as a key constraint in determining where future data center projects can be developed.
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