The Global Backlash Against AI Data Centers: Key Locations, Moratoriums, and Community Protests in 2026

South Carolina: A Hotspot for Moratoriums

South Carolina has emerged as a major flashpoint, with multiple counties implementing pauses on new development.

Chester County, South Carolina – On June 15, 2026, the Chester County Council voted to approve a six-month pause on data center applications . This followed a controversial 7-0 council vote in May 2026 to open the door to development without a community vote, which triggered a citizen petition campaign called "No Data Centers in Chester County" . County leaders have since created new rules to keep data centers away from neighborhoods and protect water and power resources .

York County, South Carolina – In July 2026, the York County Planning Commission recommended a nine-month moratorium on data center development, after the County Council unanimously passed the moratorium's second reading .

State-Level Action – At the state level, South Carolina House Bill 5286, introduced February 26, 2026, would prohibit state and local governments from granting final approval or incentives for new data centers until January 1, 2028 . Additionally, Congresswoman Nancy Mace called for a one-year federal-level moratorium on new data center construction in the state on May 18, 2026 .

Canada: Alberta's 2% Levy and Grid Strain

In Canada, the most significant developments are unfolding in Alberta, where the province has introduced a novel tax while facing a massive strain on its electrical grid.

Alberta's 2% Levy on Data Centers

Alberta announced a 2% levy on the value of computer hardware at data centers with a connected load of 75 megawatts (MW) or greater, effective December 31, 2026 . The levy is designed to be fully deductible against Alberta's 8% corporate income tax, meaning it won't add a permanent burden once a data center becomes profitable . Furthermore, data centers that provide their own power solutions (not drawing from the grid) can access a 0% rate . The province passed Bill 8, which clarifies the regulatory framework, and Bill 12, which enacts the levy, in December 2025 .

The 20 GW Pipeline and Grid Capacity Mismatch

An internal government document cited by The Canadian Press suggested that Canada's data center pipeline could reach 20 GW of load requests . While government officials pushed back, calling it a high-level "point-in-time snapshot" not a projection, the real story lies in Alberta's interconnection queue . The Alberta Electric System Operator (AESO) reports approximately 20.7 GW of data center load requests in its interconnection process, against an interim large-load connection limit of just 1,200 MW through the end of 2028—a massive mismatch that poses a significant challenge to development .

India: Water Scarcity Fuels Protests in Thane

In India, the rapid expansion of data centers is colliding with severe water scarcity, sparking intense local opposition.

Thane, Maharashtra – Amazon Data Center Protest

The most prominent protest took place in Thane, a city on the outskirts of Mumbai, on July 18, 2026. More than 100 residents formed a human chain outside the proposed 58-acre site for Amazon's Rs 45,000-crore hyperscale data center at Balkum, organized by the citizens' group "Wake Up Thanekar" .

Key concerns driving the protest include:

• Water Use: Thane already faces a daily water shortfall of 30 million liters per day (MLD), yet plans were made to supply 12 MLD of recycled sewage water to the facility .
• Noise and Heat Island Effect: Residents cited concerns over 90-decibel noise levels and the creation of a heat island effect .
• Tree Felling: Trees were being cut near homes, schools, and hospitals .
• Regulatory Questions: Environmentalists and opposition leaders questioned the lack of a public Environmental Impact Assessment (EIA) or green nod . The Thane municipal commissioner referred the residents' objections to the state government, stating the issue was beyond the corporation's jurisdiction .

Amazon has rejected the allegations, stating that tree felling is under valid permits and the facility will not use potable water for cooling . Despite this, MP Naresh Mhaske has demanded a halt to construction . This protest is part of a broader national trend, with a November 2025 BBC report noting that India's data center boom is raising significant concerns about water depletion and energy consumption .