Data Centers: Daily Notes | August 3, 2026

New York paused approval of large new data center projects over 50 megawatts; Boulder City dispute over a proposed data center on federal land has escalated into federal court and Congress; New Albany developer Eolian broke ground on a 1-gigawatt-hour battery storage project. READ MORE.

Data Centers: Daily Notes | August 3, 2026
Photo by sergey raikin / Unsplash
Your daily digest of Data Center regulatory shifts and decisions.

At A Glance 🔽

  • New York paused approval of large new data center projects over 50 megawatts, with Gov. Hochul saying the state needs a plan for facility decommissioning, not just construction.
  • Boulder City, Nevada dispute over a proposed data center on federal land has escalated into federal court and Congress, with opponents warning it could set a precedent for AI development on public lands.
  • New Albany, Ohio developer Eolian broke ground on a 1-gigawatt-hour battery storage project meant to ease price spikes for the area's dense cluster of data centers.
  • Hancock County, Kentucky is weighing a special power contract for TeraWulf's proposed 482-megawatt data center at a former aluminum smelter site, which the company plans to lease to Anthropic.
  • Albany, Georgia commissioners unanimously voted to halt new data center development for 12 months, directing planners to draft future regulations with outside consultant support.
  • Effingham County, Georgia approved a tax abatement package for OpenAI's proposed $20 billion, 1,440-acre data center campus near Rincon, projected to bring 1,000 permanent jobs.
  • Cumberland County, Pennsylvania records reveal a data center developer spent nearly two years in private talks with township officials before its proposal became public, fueling resident distrust.
  • Keller, Texas residents packed a meeting to raise concerns about a proposed data center just steps from their homes, though the project sits entirely within neighboring Westlake's jurisdiction.
  • Yerington, Nevada saw dozens march in protest of the proposed Monarch Data Center ahead of a county commissioner vote on the zoning change needed for the project.
  • Dowagiac, Michigan residents filed suit against a data center operator alleging nearly two years of disruptive, constant high-pitched noise from the facility.

New York

New York has paused approval of large new data center projects, with Gov. Kathy Hochul saying the state needs a plan for what happens when the facilities eventually become obsolete, not just how they get built.

First Statewide Moratorium on New Hyperscale Data Centers Launched by Governor Kathy Hochul
Governor Hochul signed an Executive Order to create the nation’s first moratorium on new hyperscale data centers, establishing the strongest standards for data center development and creating a blueprint to support localities.

The moratorium halts unapproved proposals larger than 50 megawatts while allowing smaller projects to continue. Speaking at a Henrietta roundtable, Hochul said the state is weighing tax incentive limits, electricity consumption rules, requirements for developers to generate their own power or pay higher grid rates, and a possible "decommissioning bond" so communities aren't left with abandoned sites, pointing to the long-vacant Bethlehem Steel property on Lake Erie as a cautionary example. Monroe County Executive Adam Bello said data centers could grow from 6% of grid demand to more than 20% by 2035 without new limits, raising concerns about utility costs and grid reliability.

Project STAMP
Exploring the potential for delivering a data center campus within Genesee County’s Science, Technology, and Advanced Manufacturing Park.

The pause now covers the proposed Stream U.S. Data Centers project in Genesee County, a $19.5 billion, 500-megawatt development described as one of the state's largest under consideration. Genesee County Legislature Chairperson Christian Yunker pushed back on the moratorium, saying the project already has supporting infrastructure, would use a closed-loop water system, and includes developer commitments to invest in the local grid, arguments Hochul said don't yet make the project "ready to go."


Boulder City, Nevada

A dispute over a proposed data center on federal land outside Boulder City, Nevada has moved into both federal court and Congress, as opponents warn the project could set a template for AI development on public lands throughout the West.

TS2 Data Center Proposal (Withdrawn 7.6.2026) | Boulder City, NV - Official Website

Following a City Council directive, the city attorney's office filed for a halt to the project on July 24, and days later, on July 27, the Center for Biological Diversity and Sierra Club petitioned the Interior Board of Land Appeals to pause construction. Developer Townsite Solar 2, a Skylar Capital Management subsidiary, had originally pursued a city-land lease worth roughly $2.3 million annually before pivoting to an adjacent federal parcel already approved for solar, after a city panel rejected the original plan 6-1. Federal officials found the shift from solar to data center didn't trigger a new environmental review, but opponents' appeal cites BLM figures showing construction water demand would rise from 25 acre-feet for solar to 560 acre-feet for the data center, and the city says the facility would require three times its current electricity load.


New Albany, Ohio

Developer Eolian has broken ground on what will become the largest battery east of the Mississippi, a 1-gigawatt-hour storage project just northeast of Columbus built to support the dense cluster of data centers around New Albany, Ohio.

The Flint Grid project's first phase is expected online by June 2027 and will be able to inject 200 megawatts into a substation serving the area's computing hub for up to five hours straight. Eolian CEO Aaron Zubaty said the battery will charge when power is cheap and discharge during peak demand, the same strategy batteries have used for years in Texas and California, helping ease the price spikes that have drawn criticism from governors across the PJM Interconnection region. The company secured the land after Amazon Web Services' 2016 arrival in New Albany touched off a wave of data center construction nearby, eventually surrounding a small leftover parcel that Eolian bought for the battery site.

Eolian bid the project into PJM's December capacity auction, which cleared at the maximum possible price, a signal that demand in the region has outpaced supply. A second, equally sized phase is planned by 2029, and Zubaty said the project shows large-scale batteries can be built in the Midwest despite the region historically lagging Texas and the West in that kind of development.


Hancock County, Kentucky

TeraWulf's plans for a 482-megawatt hyperscale data center at the former Century Aluminum smelter site in Hancock County, Kentucky are now before state regulators, as the Kentucky Public Service Commission weighs a special power contract for the project.

Data centers need massive power. They’re eyeing Kentucky’s idle industrial sites to get it. • Kentucky Lantern
Local economic development directors see an opportunity for new life at languishing industrial sites. But one environmental attorney has a warning.

The smelter closed in 2022 after more than 50 years, laying off over 600 workers in a county of about 9,000 people, but left behind the transmission infrastructure that once carried 482 megawatts to the plant. TeraWulf bought the site from Century Aluminum earlier this year and plans to lease the resulting data center to AI company Anthropic. Mike Baker, director of the Hancock County Industrial Foundation, said the site's existing power capacity made it especially attractive to developers, though the roughly 200 permanent jobs TeraWulf expects to create won't replace what the smelter once provided.


Albany, Georgia

Albany, Georgia city commissioners unanimously voted July 28 to halt new data center development for 12 months, giving officials time to write rules for future projects.

Georgia city halts new data centers for 12 months following community backlash
Albany, Georgia, is hitting pause on data center growth.

The pause can be extended another six months if needed, and could also end early if the city adopts a new ordinance sooner. Commissioners directed the Albany Dougherty Planning Commission to begin drafting regulations on where data centers could operate and what requirements they'd face, and approved hiring an outside consultant to study best practices. Commissioner Colette Jenkins said bringing in an independent consultant was meant to inform the city's decisions and reassure residents wary of local government, saying she wants the community to know officials aren't handling the process alone.


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Effingham County, Georgia

The Effingham County Industrial Development Authority approved a tax abatement package for OpenAI's proposed 1,440-acre data center campus near Rincon, Georgia, a $20 billion project the company says will bring 1,000 permanent jobs.

OpenAI, Effingham IDA talk revenue, jobs for data center | Exclusive
OpenAI plans a $20 billion data center in Effingham County, promising jobs and school funding despite local concerns.

Under the agreement approved July 21, OpenAI receives a 50% property tax abatement for 15 years while locking in the county's 2026 millage rate for the duration, a structure IDA Chief Operating Officer Brandt Herndon said still nets the county and school district more revenue than they'd get without the deal.

OpenAI: Building AI infrastructure with the Effingham County community

The estimated value of the abatement over 15 years is roughly $870 million, and the company must submit annual reports while an independent appraiser verifies compliance, with minimum benchmarks set at the $20 billion investment and 400 initial full-time jobs. The four-building, 720,000-square-foot campus is projected to eventually require up to 3.2 gigawatts of power and about 30,000 gallons of water daily once fully operational, using a closed-loop system that recirculates rather than continuously withdraws water; OpenAI says it will cover its own power costs and reduce grid draw by up to 1 gigawatt during high-demand periods.

The project is also expected to generate $32 million for Effingham County schools, funded through property and sales tax revenue, with district officials planning to use the funds to lower the school millage rate and raise teacher and staff salaries.


Cumberland County, Pennsylvania

Newly disclosed records show Pennsylvania Data Center Partners spent almost two years in private talks with Monroe Township, Cumberland County officials before its data center proposal became public knowledge in April, with early contacts dating back 20 months.

Data Center Information | Cumberland County, PA - Official Website

According to emails and texts, developer attorney Andy Giorgione began reaching out to township solicitor Michael Pykosh in September 2024, and in January 2025 asked whether then-Supervisor Phil Kehoe would talk to a local farm family about selling land for the project; the family, the Stamys, said they were never contacted. Giorgione later held two private meetings with current Supervisor Michael Wolf, in November and March, to brief him on the project before it went public. Board Chair Tim Thompson said he'd only recently become aware of these earlier exchanges, and No Monroe Data Centers founder Tina Prins said the pattern has left residents distrustful of township leadership.

The proposal now under consideration covers roughly 144 acres off Williams Grove and West Grantham roads, land that would require a zoning change since data centers are currently permitted only as a conditional use in Monroe's commercial and industrial districts. A public presentation scheduled for June 11 was pulled after one more private meeting between Giorgione and Pykosh, with the developer saying it wants to incorporate early community feedback before rescheduling.


Keller, Texas

Westlake data center sparks concerns among residents

Keller residents living along the Westlake border packed a community meeting Sunday to raise concerns about a proposed data center just steps from their homes, ahead of a Westlake Planning and Zoning Commission review Tuesday.

Resident Kevin Myers, whose backyard borders the proposed site, said Westlake officials put the facility just 506 feet from his back property line and that neighbors learned about the project only last week. Myers cited worries about falling property values, noise, and environmental impact, while resident Trevor Oaks asked what window residents have left to formally object. Because the project sits entirely within Westlake city limits, Keller officials said they have no authority to block it.

Keller Mayor Armin McMullin said he wished Westlake had communicated with Keller sooner, noting he'd expect his own city to proactively notify neighboring officials in a similar situation. Westlake has said the project will meet the town's noise standards, have minimal traffic impact, and generate significant tax revenue. McMullin said Keller will focus its feedback to Westlake on setbacks, location and noise, the issues residents raised.


Yerington, Nevada

Protestors demonstrate against a planned data center in Yerington

Dozens marched through Yerington, Nevada in protest of the proposed Monarch Data Center on Sunday, days before Lyon County Commissioners are set to vote on a zoning change needed for the project to proceed.

Dozens protest against planned Monarch Data Center north of Yerington
Neighbors say they’re concerned about resource usage and contamination.

Developer Copia Power's proposal would occupy 505 acres off Penrose Lane about eight miles north of Yerington and could draw up to 1 gigawatt of power, enough for hundreds of thousands of homes; according to Cleanview's data center map, only one U.S. facility currently operates at a higher capacity. The Lyon County Planning Commission voted 4-3 on July 14 to advance the project, and Copia says construction would begin in late 2027 or early 2028, with the company estimating $2.5 billion in county tax revenue and roughly 800 acre-feet, or 260 million gallons, of water use per year.

March organizer Katie Calhoun said the project doesn't belong in a farming community, and Yerington resident David Janakos pointed to the valley's already critically low water levels after years of drought. Lyon County will hold a public workshop on future data center rules on Monday, Aug. 3, ahead of Thursday's commissioner vote on the zoning change.


Dowagiac, Michigan

Neighbors say noise from Michigan data center is 24/7 and upending their lives

Residents near a Dowagiac data center have filed suit against operator Alliance Cloud Services, alleging a constant high-pitched noise from the facility has disrupted their lives for nearly two years.

The suit, brought against the Hyperscale Data subsidiary, describes the sound as relentless and ongoing day and night, with residents saying it has interfered with sleep and outdoor activities. Several neighbors likened it to a vacuum cleaner running nonstop indoors. The company allegedly assured residents it had bought extra land to buffer the noise and said it would purchase their homes if the problem couldn't be fixed. The site originally operated as a Bitcoin mining facility before the company said it planned to pivot toward AI computing and robotics.

In response, Dowagiac adopted an industrial noise ordinance limiting sound to 65 decibels by day and 55 at night, and has issued fines against the operator for alleged violations, which Hyperscale Data has disputed, challenging the city's measurement methods.


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