Voters in Monterey Park, California, have approved what appears to be the nation's first complete ban on data centers, with approximately 86 percent supporting the measure in Tuesday's elections according to county clerk results. The prohibition reflects growing community concerns about the infrastructure demands of data centers.

Meanwhile, in Utah, businessman Kevin O'Leary has agreed to reduce his planned data center project by half following pressure from residents and activists. O'Leary, known for his role on Shark Tank, sent a letter to Utah Senate President J. Stuart Adams on Thursday stating he would remove 19,430 acres from the originally proposed 40,000-acre development.

Utility costs associated with data centers are creating tension in other regions as well. In Arizona, the state's largest utility company has proposed a 45 percent electricity rate increase specifically for data centers, along with a 14.5 percent rate hike for residential customers. The proposal has drawn opposition from both data center operators and households facing higher bills.

Data center operators, particularly large cloud computing companies, are facing increased scrutiny over their consumption of natural resources. Water usage has become a particular concern, as these facilities require significant amounts of water for cooling systems. Some operators have begun implementing measures to address water quality and availability impacts in their communities.

The pushback reflects broader concerns about the rapid expansion of data infrastructure driven by artificial intelligence and cloud computing demands, as communities weigh economic benefits against resource consumption and utility costs.