The rapid growth of artificial intelligence has prompted many countries to rethink their approach to building data centers. If such facilities were once seen as an unquestionable symbol of digital development and a region's investment appeal, authorities are now increasingly assessing their impact on power grids and urban infrastructure.
The reason is simple: modern AI models require enormous computing power. A large data center can consume as much electricity as a small city.
Singapore imposed a moratorium on new projects as early as 2019 because of growing pressure on the power grid and limited land resources, and later allowed construction only of the most energy-efficient facilities. In Ireland, connections for new data centers in the Dublin area were significantly restricted because of risks to the stability of electricity supply. Similar restrictions on the construction of the largest data centers have also appeared in the Netherlands.
Changes are also taking place in the United States. Monterey Park, California, became the first city in the country to introduce a permanent ban on new data centers. Seattle has a one-year moratorium in place while officials develop rules that take into account energy consumption, environmental consequences and the burden on utility networks. According to local services, several new facilities could consume up to one-third of the city's entire electricity supply.
Experts note that this is not about fighting technology, but about finding a balance between the development of the digital economy and the capacity of infrastructure. Data centers are increasingly being viewed as an important part of the urban environment, alongside roads, power plants and water supply systems. This approach could speed up the adoption of more energy-efficient technologies and make the industry's continued growth more sustainable.
