Local communities and regulators in Europe and Asia are increasingly raising opposition to new data center projects, citing concerns over the consumption of electricity, water, and land. This trend, which mirrors similar developments in the United States, has led to project delays and new regulatory measures in several countries, according to industry reports and government statements.
In Europe, public opposition has affected data center investments valued at approximately $42 billion through delays and cancellations, according to research from consulting firm STL Partners. A report from the European Data Center Monitor noted that more than 70 data center projects on the continent were rejected or restricted between January and April of this year, a number exceeding the total for all of 2025.
Several European governments have taken action in response to these concerns. In Scotland, officials have paused planning approvals for new large-scale, or “hyperscale,” data centers. This decision followed calls from campaigners to study the effects of high power demand from data centers in Ireland. Denmark’s government passed an emergency law that could place data centers at a lower priority for connecting to the national power grid. In Spain, new rules were proposed that would require data centers to source 80% of their electricity from renewable energy.
Similar resistance is occurring in Asia, particularly in South Korea, where the national government has identified AI data centers as a major investment priority. At the local level, however, projects are encountering opposition. In the Geumcheon district of Seoul, residents have called on authorities to halt construction of a data center near residential areas, with local media reporting that protests had continued for 172 days as of mid-August. In response to such concerns, officials in Seoul announced plans to require consent from a majority of residents living within 200 meters of proposed sites.
Industry executives and analysts have commented on the changing environment. Eulalia Flo, a vice president at data center operator Equinix, told CNBC that while the company does not see the opposition as a structural constraint on growth, “the policy environment is genuinely tightening in some markets.”
Dominic Ward, CEO of data center firm Verne, stated that the industry has become more visible. “We used to be a completely unknown part of the economy,” Ward told CNBC. “Now we are one of the fundamental layers driving the economy.”
The financial implications of these developments can be significant for developers. Asya Walters, a managing director at the consulting firm Alvarez & Marsal, noted that while most capital is spent after permits are secured, companies invest substantial funds to reach that stage. “There is some loss that could happen there if they never get the permits,” Walters said.
