Data Center Pushback Is Rewriting the Map for Industrial Land
A count of nearly 99,000 local records shows towns in every state reaching for moratoriums, bans and zoning rewrites, and the tool each one picks depends on its state law.
What the data showed
CRE Daily reported today on new research from GatherGov, which combed through nearly 99,000 local agendas, minutes and records that mentioned data centers. Over the 12 months ending in September, about 2,100 jurisdictions across all 50 states discussed at least one specific restriction. Moratoriums led by a wide margin, appearing in 4,269 documents and ranking as the most cited tool in 37 states. Bans or prohibited use rules came next at 2,307, followed by water rules, noise limits and conditional use permits.
The trend line matters more than the totals. According to CRE Daily, moratoriums made up 0.4% of data center documents in October 2025 and 8.7% by July 2026, and talk of restrictions has grown faster than talk of data centers overall. CRE Daily also counted formal moratorium action in 632 jurisdictions since January, and noted that Yardi Matrix has flagged new state level moratoriums in New York and Texas.
State law decides the tool
The most useful finding for anyone holding land is that the response follows state law, not just local mood. Georgia counties can pause development by simple resolution, so they pause. Pennsylvania courts have blocked moratoriums, so towns there declare their own zoning defective and rewrite it, a move that can freeze competing applications for 180 days. New Jersey outlawed development moratoriums in 1985, so officials go straight to eliminating the use. Texas counties have little zoning power, so the fight there runs through water.
That means the same campus could be paused in one state, banned in a second, zoned out in a third and stalled over water in a fourth. CRE Daily's takeaway is that choosing a site now means understanding state law, not just power and land. I would put it more bluntly: entitlement risk is now the first line of underwriting for any parcel being sold on data center demand.
What it means for land
For the last two years, a lot of rural and exurban acreage near transmission lines has been priced as if a hyperscaler buyer was only a matter of time. Much of that pricing assumed by right industrial zoning that may not survive the next council meeting. Where towns shift to conditional use permits or curative amendments, the by right premium shrinks and the holding period stretches. Land underwritten on a data center exit that loses that exit falls back to its agricultural, industrial or residential value, and those numbers are usually far lower.
There is an opportunity on the other side. Parcels that already hold vested approvals, secured water and a utility commitment get scarcer as restrictions spread, and scarcity is worth paying for. Communities that write clear conditional use rules instead of freezing everything are likely to capture the projects their neighbors turn away and the workforce housing demand that follows.
Where our watchlist sits
Several LandBriefing watchlist metros sit in the states this research highlights. In Dallas and Austin, the Texas debate centers on water, the same input every new residential subdivision needs. Raleigh is in North Carolina and Milwaukee is in Wisconsin, both prominent moratorium states. Syracuse is in New York, where Yardi Matrix flagged a state level pause. Columbus has drawn heavy data center investment, and Ohio towns are already debating conditional use versus moratoriums. None of this changes our scores, but it raises the bar for any land deal in those metros that leans on data center demand.
The risks and what I am watching
The risk runs in both directions. Many pauses are short; Barnes County, North Dakota approved six months, and GatherGov says six to 12 months is typical. A ban or a defective zoning declaration is different, and it can turn a long hold into a stranded one. Demand is also concentrated, so if data center spending slows, the restrictions stop mattering and so does the premium. I am watching whether moratoriums harden into permanent ordinances, whether states step in to preempt local rules, and whether Texas water fights start reaching residential subdivision approvals.
At Kaufman & Company we look at land through power, water, entitlement and local politics together, because that is where deals now get made or lost. You can see how our platform and companies fit together here.
Explore Kaufman & Company- Moratoriums Are Just One of 11 Data Center Restrictions, CRE Daily, October 26, 2026