US data center moratoriums top 400 — an AI bull explains why they're actually good for AI
kevinsxu · x · 2026-10-16
Kevin Xu, founder of an AI-focused fund, has tracked US data center moratoriums since January; his public dashboard is now widely cited and the count has crossed 400 (406 active, 481 local moratoriums tracked, 33 state bills, 46 states affected as of October). As a self-described AI bull, he argues moratoriums are actually good for AI's long-term success:
- Squeezing out bad actors: amid the compute crunch, shady operators sign leases, take loans, and run; moratoriums force serious builders to do right by communities
- Supporting GPU rental prices: slower construction keeps supply tight and extends GPU usefulness — a healthy GPU price keeps legit operators solid while ROI remains unresolved and debt questions mount
- A "slower for longer" soft landing: most moratoriums last one year or less, stretching into mid-late 2027. Communities don't oppose data centers outright — they need time to learn. The industry has a year for meaningful engagement (not PR); projects already in motion keep the supply chain humming for two years, per Ciena's CEO
He also flags community issues the industry must address, like air and noise pollution in rural locations.
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