Data Centers: Daily Notes | July 30, 2026

Memphis faces a congressional demand from Rep. Frank Pallone for a tour of xAI's Colossus data centers; La Conner placed a six-month moratorium on data center permit applications; Park County is proposing that data centers obtain special-use permits as part of a broader land-use overhaul. READ MORE.

Data Centers: Daily Notes | July 30, 2026
Photo by sergey raikin / Unsplash
Your daily digest of Data Center regulatory shifts and decisions.

At A Glance 🔽

  • Memphis, Tennessee faces a congressional demand from Rep. Frank Pallone for a tour of xAI's Colossus data centers, citing concerns over off-grid gas turbines, pollution and grid strain.
  • La Conner, Washington placed a six-month moratorium on data center permit applications to review regulations, despite having received no actual applications or inquiries.
  • Park County, Washington is proposing that data centers obtain special-use permits as part of a broader land-use overhaul, even though no project is currently proposed and residents show strong opposition.
  • Box Elder County, Utah is the site of a dispute over the status of the proposed Wonder Valley data center, with the state development authority calling its work paused amid a referendum challenge while the developer insists it's proceeding "full steam ahead."
  • Cass County, Michigan residents met to push for coordinated action across the county's townships ahead of future data center proposals, spurred by ongoing noise complaints tied to an existing facility
  • Decatur, Indiana saw the county Democratic committee call for greater transparency on data center discussions in Greensburg and urge a temporary moratorium on new hyperscale development in unincorporated areas.
  • Dallas, Texas zoning records reveal a proposed data center project could extend onto the site of Dallas Market Hall, raising the possibility the longtime event venue will be demolished.
  • Pahrump, Nevada residents raised concerns at a town hall about a proposed 900-acre data center's water consumption and power grid impacts, though the developer touted projected tax revenue and permitting fees.
  • Marshalltown, Iowa City Council voted to schedule a public hearing on a four-month data center moratorium, aiming to evaluate rules since the city currently has none specific to the industry.
  • Plymouth, Pennsylvania is locked in a legal dispute between the township and a data center developer over a 43-point mitigation plan the developer's attorneys are challenging as overly burdensome.

Memphis, Tennessee

House Energy and Commerce Committee ranking member Frank Pallone sent a letter Wednesday demanding SpaceX CEO Elon Musk allow a tour of the company's xAI data centers and power plants near Memphis, pointing to rising electricity prices, grid strain, pollution and noise as growing concerns for local communities.

Read the full letter here.

Pallone said SpaceX has shown a "disregard for the health and well-being of local communities" by bringing in off-grid gas turbines to power the Colossus facilities without proper permits or pollution controls, calling it a serious health risk to nearby residents. He requested facility information by Aug. 11, and SpaceX did not respond to a request for comment. The Colossus and Colossus 2 sites, originally built by xAI before its acquisition by SpaceX, run on Nvidia chips and are central to the company's AI strategy.

The demand follows the Trump administration's Department of Justice intervention supporting xAI in a lawsuit brought by environmental groups and the NAACP in Mississippi over the company's alleged illegal use of polluting turbines. Pallone said the administration's backing doesn't make the practices lawful. The controversy comes amid broader national opposition to AI data centers, with a May Gallup survey finding seven in ten Americans oppose such facilities in their area.


La Conner, Washington

La Conner's Town Council placed a temporary moratorium Tuesday on accepting data center permit applications within town limits, a pause that will remain in effect for at least six months.

Town approves moratorium on data centers
Washington, like many other states in the U.S., is experiencing an “unprecedented growth in demand” for the development of data centers, according to the ordinance.

Planning Director Ajah Eills said the moratorium gives the town time to review its regulations and determine whether any form of data center would ever be appropriate, or whether the town should take a more prohibitive approach. Staff plan to draft an ordinance revising the town's land use rules to specifically address data centers, using Skagit County's definition of the term, since the county adopted a similar moratorium for unincorporated areas on June 1. Eills noted the town's proximity to a large water source, a resource data centers depend on, as a factor behind the move.

The town has not received any data center permit applications or inquiries, Eills said, but two residents had called for a moratorium at the council's previous meeting. A public hearing on the moratorium is expected to take place at the town's Aug. 25 meeting.

La Conner Public Hearing Aug 25, 2026
Public Hearing meeting. Vote scheduled? TBD.


Park County, Wyoming

Park County commissioners are proposing that data centers and other heavy-load electrical users be required to obtain a special-use permit, part of the county's first comprehensive land-use overhaul in more than a decade, even though no data center proposal is currently on the table.

Park County Commission Says Data Centers Not Imminent And Residents Are ’100% No’
Park County commissioners say geography and other factors mean data centers aren’t imminent, but they want to have regulations in place if or when the…

Commission Chairman Scott Steward said residents have expressed overwhelming opposition, describing the sentiment as "100% no," and Commissioner Scott Mangold said much of that resistance likely stems from uncertainty about what a large-scale facility would mean for the county. The special-use permit process would guarantee two rounds of public hearings, one before the Planning and Zoning Commission and another before commissioners make a final decision. Under the current draft, industrial zoning for such projects would be concentrated around Cody and Powell, where electrical infrastructure already exists, with data centers also potentially allowed on larger rural parcels zoned 20 or 35 acres.

Both Steward and Mangold said Park County currently lacks key traits developers typically seek, including proximity to an interstate or railroad and sufficiently large industrial zones, making a major facility unlikely there for now. Still, commissioners said they don't want to dismiss the possibility entirely given how quickly the technology is evolving, and are continuing to refine the draft regulations with additional public comment expected before the county adopts its updated land-use plan.


Box Elder County, Utah

A dispute has emerged over the status of the proposed Box Elder County data center, after Utah's Military Installation Development Authority said Wednesday its work is paused amid a pending referendum challenge, a claim developer Kevin O'Leary disputed, saying his team remains "full steam ahead" on the project.

(O'Leary Digital) Renderings of the proposed Stratos data center project to be constructed in remote Box Elder County.
Designing the Box Elder County data center is ‘full steam ahead,’ Kevin O’Leary says, while MIDA is on ‘pause’
Kevin O’Leary said work on the Stratos data center project proposed for rural Box Elder County is “full steam ahead” and that his team hopes to file for a water permit by the end of next month.

MIDA, which established the project area for the proposed Wonder Valley Utah campus, said there's currently no action before it as it respects the ongoing referendum process. O'Leary Digital CEO Paul Palandjian said the distinction lies in the fact that his company continues advancing power and data center design and engineering work independently, with no need for MIDA action until permit submittals follow completion of that predevelopment phase. Box Elder County residents pursuing the referendum have appealed the county attorney's ruling blocking a November vote on the project, and O'Leary Digital Utah has intervened as a defendant in that case, while a separate lawsuit challenges the legitimacy of the MIDA board itself.

O'Leary said his team plans to file for a water permit by the end of August, and Palandjian said the company will begin working with MIDA in early August to scale back the project area as O'Leary previously promised. A MIDA board meeting is tentatively set for Aug. 18, with no agenda posted yet.


Cass County, Michigan

Residents prepare to act on future data center proposals in Cass County

Residents across Cass County met in Dowagiac Tuesday to push for coordinated action across the county's 15 townships before any new data center proposals surface, spurred by months of noise complaints tied to the existing Hyperscale Data Center in the area.

Sherie Dooly-Jones, who presented at the meeting after 18 months researching data centers and touring affected communities elsewhere, stressed the urgency of preparing now rather than waiting years. She said Michigan appeals to developers in part because zoning decisions are made township by township, with counties unable to impose a countywide moratorium.

Neighbors said the Dowagiac facility has continued operating despite alleged noise ordinance violations, and organizers argued the issue affects every township regardless of where a facility is sited. The group also urged townships to pursue community benefit agreements with future developers that would fund roads, EMS and local organizations, with the goal of presenting a united front to gain more leverage before the next data center proposal arrives.


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Decatur, Indiana

The Decatur County Democratic Central Committee called for greater transparency around ongoing data center discussions in Greensburg, urging the city to publicly clarify the project's status and expected community impact.

Sabey Decatur Data Center

Committee Chairman John Pratt said recent discussions have drawn significant public interest but left residents with more questions than answers. The committee also called on Decatur County officials to adopt a temporary moratorium on new hyperscale data center development in unincorporated areas while the county's Comprehensive Plan is being updated, arguing a pause would give leaders and residents time to evaluate impacts on infrastructure, utilities, land use, public services and long-term growth before additional projects move forward.

Pratt said the committee isn't opposed to economic development, but is asking for thoughtful planning and transparent government as the process continues.


Dallas, Texas

New Dallas zoning records reveal that a proposed data center project in the Stemmons corridor would extend onto the site of Dallas Market Hall, raising the possibility that the longtime event venue could be demolished.

Dallas Market Hall

Developer Crow Holdings announced the 40-acre, five-story, 245-megawatt data center in January, working alongside Arlington-based CleanArc Data Centers on a design built around high-efficiency cooling and Tier III electrical redundancy. City records show zoning verification requests filed in April and July, and the property's MU-3 mixed-use designation means the project could proceed without going before the Dallas City Council; an existing building permit on the site remains valid through December 2027.

Dallas Market Center Senior Vice President Cole Daugherty said the company stopped scheduling future events at the hall, which opened in 1960 and has hosted presidential visits, concerts and trade shows, months ago while it considers redevelopment options.


Pahrump, Nevada

A Pahrump town hall on July 25 drew resident concerns about a proposed 900-acre data center along State Route 160, with the Nye County Commission fielding questions about water consumption and power grid impacts.

Boulder City, Pahrump data center debate heats up over water, power use
Debate over proposed data centers in Boulder City and Pahrump is intensifying, with opponents warning about water use and strain on the power grid while support

Developer Sean Dalesandro said online misinformation has clouded public understanding of the project and that the company aims to bring more transparency to the process. He pointed to projected financial benefits, including $12 million in expected permitting fees for Nye County and over $114 million in annual tax revenue once the facility is fully built, funds he said would meaningfully support schools and community services. Dalesandro's response also said the project intends to secure its own power sources to shield ratepayers from added costs.


Marshalltown, Iowa

Marshalltown City Council voted 5-2 Monday to schedule a public hearing on a four-month moratorium on data center development applications, with the hearing set for Aug. 10 at City Hall.

Assistant Director of Housing and Community Development Clayton Ender said the pause would let the city evaluate rules for the land use, since Marshalltown currently has no regulations specific to data centers. The comprehensive plan envisions such uses locating in industrial zones, largely on the east side of town, though it doesn't specifically address data centers. The Planning and Zoning Commission is expected to begin its review during an Aug. 6 work session, and a community roundtable is scheduled for Aug. 27 at the Coliseum.

City officials said no company has formally proposed a data center for Marshalltown, though prospects exist. Residents were split at Monday's meeting: Brandy Glick argued the city should reject a bad deal now rather than wait four months, while Jolene Ballard said she appreciated the council's caution in pursuing a moratorium. and tax revenue, while resident April Long cited noise pollution, light pollution and permanent farmland loss as reasons quality of life could suffer.


Plymouth, Pennsylvania

Plymouth Township is locked in a dispute with developer Brian O'Neill over his proposed 2 million-square-foot data center at a former steel plant, after the township's 43-point, nine-page plan of health, safety and mitigation conditions drew a legal challenge from O'Neill's lawyers.

A data center project is proposed for 900 Conshohocken Road in Conshohocken.Binswanger

Under Pennsylvania law, the township can't outright reject a lawful land use but can enforce zoning rules and require mitigations. Officials said O'Neill's company initially indicated it would implement any provisions the township proposed, only to balk at the final list; his attorneys are now arguing the conditions are too burdensome and challenging the township's zoning ordinance. Plymouth Township responded Monday night with a 12-page statement calling the legal challenge "a blatant attempt by the Applicant to demand approval by tantrum," and council president Lynne Viscio told the Philadelphia Inquirer that O'Neill has "bullied" and "intimidated" township officials.


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