On one hand I want to stay YIMBY here, my typical problem with arguments against this stuff is that it looks at the resources as finite. We can/should build more power capacity. Water usage concerns already have solutions. The market should be allowed to do its thing.
On the other hand I think there are looming problems with data centers. Energy is the obvious one because its detrimentally affecting residents who had no part or say in someone gobbling up a public resource. And its cheaper to build the centers that don't recycle their water usage, so some legislation is needed there. A moratorium toward those ends makes a lot of sense to me.
I have one other unfinished thought that maybe a wait-and-see mentality is a good thing right now. We might be approaching peak LLM usage, maybe. If we are nearing a bubble burst, I can see how a state's leadership might want to protect its residents however it can, but I don't totally know if a moratorium on this achieves that or just delays the inevitable.