- Environmental group urges halt to new data centers.
- Concerns grow over AI and crypto’s strain on water and power.
- National moratorium proposed as demand projections rise.
Wednesday, November 5, 2025 –– The nonprofit organization Food & Water Watch announced a new policy stance calling for a nationwide moratorium on the approval and construction of new large-scale data centers. The group cited the escalating water and energy demands driven by the rapid growth of artificial intelligence and cryptocurrency operations as a national resource concern.
According to the organization in its October 23 press release
, communities across the United States are increasingly opposing proposed data centers because of their potential effects on local water security, higher electricity costs for consumers, and the expanded use of fossil fuels.
Rising Strain on Utilities.
“Millions of Americans are already struggling with water scarcity and high utility bills,” said Wenonah Hauter, executive director of Food & Water Watch. “The sudden and unregulated expansion of the Big Data industry represents an existential threat for communities ill-equipped to bear the burden these huge facilities place on limited water and power supplies. The only prudent action is to halt the expansion of this industry until the full scope of potential harm can be evaluated.”
This could be the first time a national environmental organization has publicly demanded a complete moratorium on new data center construction and permitting.
Projected AI Water and Energy Use.
The group’s analysis projects that by 2028, AI-related data centers could require:
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720 billion gallons of water each year to cool servers—roughly equal to one million Olympic-size swimming pools or the indoor water needs of 18.5 million American households.
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300 terawatt-hours of electricity annually, enough to power more than 28 million homes.
The report underscores the growing concern that without new oversight, these facilities could overtax both regional energy grids and local water systems already stressed by drought and population growth.
Federal Policy Context.
The announcement follows the Trump administration’s release of an “AI Action Plan” earlier this year. The plan emphasizes advancing artificial intelligence industries—including large-scale data centers—and proposes loosening certain environmental and land-use regulations viewed as barriers to industrial expansion.
What Comes Next.
The call for a moratorium is expected to intensify national discussion over how to balance technological progress with environmental stewardship. Policymakers and local governments may face increasing pressure to evaluate how new data infrastructure projects intersect with long-term water-supply planning and energy resilience.
