Data Centers: Daily Notes | May 19, 2026

Denver votes unanimously for a moratorium, with calls for a permanent ban; Pocatello denies a data center permit over missing details; West Virginia strips local authority; and St. Louis delays a vote on a three-tier zoning framework.

Data Centers: Daily Notes | May 19, 2026
Photo by sergey raikin / Unsplash
Your daily digest of Data Center regulatory shifts and decisions.

At A Glance πŸ”½

  • West Virginia House affirms state-level control over data center policy, blocking local authority.
  • Denver City Council votes for one-year data center moratorium.
  • Lowell Township, MI board rejects moratorium; residents threaten recall over Microsoft hyperscale project.
  • Claremore, OK approves "Project Mustang" with a 25-year tax exemption for Beale Infrastructure after packed hearing.
  • Normal, IL votes for six-month moratorium.
  • Mount Carmel Township, PA enacts 180-day moratorium.
  • Hubbard, OH proposes 12-month moratorium after hundreds confront mayor over secret NDA tied to "Project Milo."
  • St. Louis, MO delays vote on three-tier data center zoning framework.
  • Pocatello, ID hearing examiner denies data center permit for former Hoku plant; developer vows to return.
  • Cave City, KY advances first reading of one-year moratorium; final vote set for May 20.

West Virginia

West Virginia's Republican House majority affirmed that data center regulation will remain at the state level, stripping local governments of authority over siting decisions.

WV House Interim Meetings 1:00 PM General Session Presentation on Data Centers

At a two-day interim session on Monday, a panel of delegates who attended the Data Center World conference in Washington, D.C. told colleagues that growing AI demand makes data center expansion inevitable. Tax revenue from data centers will be collected by the state rather than the host county, and local commissions will have no power to block projects.


Denver, Colorado

4900 Race St., Denver, CO 80216 | CoreSite

Denver City Council voted to impose a one-year moratorium on new data center construction, with several council members pushing for a permanent ban.

26-0431 - Data Center Moratorium Bill
City and County of Denver - File #: 26-0431
Title: A bill for an ordinance authorizing a moratorium on data centers. Authorizes a moratorium on the acceptance or processing of certain permit and site development plan applications where a data center is the proposed primary use. The Committee approved filing this item at its meeting on 3-31-2026.

A bill for an ordinance authorizing a moratorium on data centers.

The moratorium is a direct response to a 600,000-square-foot CoreSite data center under construction in the Elyria-Swansea neighborhood, which could consume 300 million gallons of water per year and includes large diesel backup generators. The city will convene a working group to draft policy recommendations before the moratorium expires in May 2027.


Lowell Township, Michigan

Lowell Township's board voted to reject a six-month data center moratorium, triggering an uproar from the audience and immediate recall threats against board members who voted no.

πŸ”— 01-2026R Ordinance to Impose a Temporary Moratorium - Data Centers

The moratorium was a response to Microsoft's planned hyperscale data center at Covenant Business Park, a 237-acre industrial parcel. Microsoft voluntarily paused those plans in December after resident pushback, and no formal site plan has been submitted since. The board instead authorized a committee to develop a data center ordinance, but residents from the group Residents United for a Healthy Lowell argued the moratorium would have given the township time to do that research.


Claremore, Oklahoma

Claremore City Council approved "Project Mustang", a multi-phase data center proposed by Beale Infrastructure in the city's industrial park, after hours of public debate that filled City Hall past capacity.

Proposed Claremore Data Center Project - Claremore

The agreement allows up to three data centers built in phases, with a 25-year ad valorem tax exemption for each. Beale said the facilities would contribute more than $250 million toward Rogers County schools, municipal services, and community programs over time. The proposed data centers would be air-cooled, use about 20,000 gallons of water per day, and produce noise levels comparable to a quiet office environment. Beale also committed to covering 100% of power infrastructure costs and estimated roughly 50 permanent jobs per phase. Residents who opposed the project raised concerns about property values and potential health impacts.

Page 140 of 474 | May 18, 2026 City Council Meeting

Normal, Illinois

Normal's Town Council voted for a six-month moratorium on data centers, effective through November 30.

Page 79 of 80 | πŸ”— An Ordinance Establishing A Moratorium On Data Center Facilities

Town officials said the pause would give them time to study infrastructure and zoning impacts, with any future regulations brought back for public input.


Pocatello, Idaho

Pocatello's hearing examiner denied a conditional use permit for an AI data center on the former Hoku polysilicon plant site, overruling city planning staff who had recommended approval.

πŸ”— Findings of Fact and Decision - City of Pocatello Hearing Examiner

Hearing Examiner Kathleen Lewis found that Gilbert, Arizona-based Lex Developments failed to meet the seven-part criteria under Chapter 17.02.130 D of the Pocatello Municipal Code, citing insufficient details on water usage and building design. Developer Gus Schultz closed on the property the day before the May 14 public hearing, paying roughly double the $1.25 million the site sold for in 2019. Supporters pointed to a projected $2.26 billion construction investment and 150 to 300 permanent jobs. The former Hoku site has sat largely idle since the company went bankrupt in 2013 with roughly $1 billion in debts. Schultz has 14 days to file a written appeal; he said he plans to return with a new application once an Idaho Power study determines how much electricity the facility can draw.


Mount Carmel Township, Pennsylvania

Mount Carmel Township supervisors voted to enact a 180-day moratorium on data center proposals, drawing applause from more than 100 residents at the Coal Region Sports Complex.

πŸ”— Mount Carmel Township Draft Zoning Amendment: Regulating data centers in the S-2 Zoning District

The vote follows a hearing last Wednesday where over 30 residents spoke against data centers, citing concerns about noise, light pollution, water consumption, and electricity demand. Supervisor Aaron Domanski said officials would use the full 180 days to make the township's zoning ordinance stricter.


Hubbard, Ohio

Hundreds of Hubbard residents packed a City Council meeting to confront Mayor Ben Kyle over a nondisclosure agreement he signed in 2024 tied to a proposed data center known only as "Project Milo".

One proposed site is the former Deer Creek Golf Course on East Liberty Street, surrounded by residential areas in both the city and the township. Council voted to propose a 12-month moratorium, with a final vote scheduled for June 1. Councilperson Robin Zambrini, who introduced the moratorium, said she was frustrated that months of resident questions about the project had gone unanswered. Mayor Kyle said the NDA is standard practice in early-stage development to protect company trade secrets.


St. Louis, Missouri

St. Louis delayed a vote on sweeping new data center zoning rules Monday night after the city's Planning and Urban Design Agency recommended the commission take more time to consider public feedback.

πŸ”— Updated Framework for Data Center Regulation

The proposed framework defines three tiers of data centers: micro, standard, and major. In a departure from most cities, St. Louis would eliminate all "by right" approvals for data centers. Major facilities drawing 30 megawatts or more would be confined to industrial Zone K and barred from sites within 600 feet of homes, schools, transit centers, or parks, with a 500,000-square-foot cap. The commission will schedule a separate meeting before forwarding the framework to the Board of Aldermen.


Cave City, Kentucky

πŸ“†
Joint City-County Planning Commission of Barren County, Kentucky
April 30th , 2026 Meeting Agenda
On data centers: Public Hearing on 043026-01-C – Text Amendment – Update to the Cave City Zoning Ordinance

Cave City council members approved the first reading of a one-year moratorium on data center development at a special-called meeting Monday, with a second reading and final vote set for May 20.

πŸ”— Cave City Zoning Ordinance

The city's current zoning ordinance does not address data centers at all, and City Attorney Bobby Richardson said the moratorium would give officials time to determine what new rules are needed. The Joint City-County Planning Commission of Barren County will study potential impacts on infrastructure, the environment, and land-use compatibility during the pause. Some audience members pushed for a permanent ban rather than a temporary moratorium.


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