Data Centers: Daily Notes | September 16, 2026

Sulphur Springs City Council narrowly rejected a proposal to audit its economic development agreement; Woodburn City Council unanimously approved a 120-day moratorium; Riverside; Marysville; Orange County; Leon County; Eugene; Santa Cruz; Raleigh. READ MORE.

Data Centers: Daily Notes | September 16, 2026
Photo by sergey raikin / Unsplash
Your daily digest of Data Center regulatory shifts and decisions.

At A Glance 🔽

  • Sulphur Springs, Texas City Council narrowly rejected a proposal to audit its economic development agreement with SSDC1, LLC, as disputes over the proposed data center continued amid concerns about project delays, compliance, and community impacts.
  • Woodburn, Oregon City Council unanimously approved a 120-day moratorium on new data centers to review zoning, utility, and environmental impacts before developing regulations for future projects.
  • Riverside, California City Council created a temporary three-member committee to study artificial intelligence and develop citywide policy recommendations, including issues related to resource demands and data center regulation.
  • Marysville, Kansas City Council unanimously adopted a 12-month moratorium on data centers to halt new applications while officials study potential impacts and develop zoning regulations.
  • Orange County, Florida commissioners signaled support for a temporary moratorium on hyperscale AI data centers to give staff time to study zoning, water, electricity, noise, and environmental impacts.
  • Leon County, Florida commissioners unanimously advanced an 18-month moratorium on large-scale data centers to develop regulations addressing compatibility, infrastructure, water use, electricity demand, and potential utility costs.
  • Eugene, Oregon residents urged city officials to impose a broader data center moratorium after the city rejected a proposed facility at the former Hynix site, with the council set to revisit data center policy in December.
  • Santa Cruz, California supervisors rejected a proposal requiring voter approval for future AI data centers and instead opted to study the issue further, while the measure’s sponsor said he may pursue a ballot petition.
  • Raleigh, North Carolina officials are preparing a six-month moratorium on new data centers to study land, water, and electricity demands, with a public hearing scheduled for Oct. 6.

Sulphur Springs, Texas

Sulphur Springs City Council narrowly rejected a proposal to audit its economic development agreement with SSDC1, LLC, as disputes over the proposed data center dominated the Sept. 1 meeting.

Councilman Jay Julian’s motion to review construction deadlines, insurance coverage, and compliance issues failed on a 4‑3 vote, despite questions about litigation delaying the project under force majeure provisions. City Manager Marc Maxwell outlined potential revenue from the first phase, estimating $23.2 to $29.8 million, with ideas ranging from utility credits to new public facilities. Residents protested outside City Hall, citing noise, lighting, and wildlife impacts, while CyrusOne scheduled a Sept. 24 town hall to address concerns. Maxwell denied rumors of nuclear development, stressing the city is not pursuing One Nuclear.


Woodburn, Oregon

Woodburn City Council unanimously approved a 120‑day moratorium on new data centers, pausing permit applications while officials study zoning rules, utilities, and environmental impacts.

Data Center Moratorium Fact Sheet
Woodburn approves 120-Day moratorium on new data center development
The Woodburn City Council has approved a 120-day moratorium on new data center development, making it the latest Oregon city to buy time to review regulations a

The ordinance halts acceptance, review, and approval of proposals for data storage and processing facilities but does not affect other industrial projects. City leaders said the pause will allow them to evaluate water and energy demands, noise concerns, and infrastructure needs before drafting regulations. The moratorium comes amid statewide debates, with Hillsboro pushing back against expansion and Clackamas County beginning its own discussions. Officials emphasized no data center applications are currently pending in Woodburn. The temporary measure positions the city to proactively manage future proposals.

Data Center Moratorium | Woodburn, OR

Riverside, California

Riverside City Council created a temporary three‑member committee to study artificial intelligence and draft citywide policy recommendations, reflecting growing concern over the technology’s rapid expansion.

Riverside Council Establishes Temporary Committee To Research Artificial Intelligence
In response to the rapid proliferation of artificial intelligence (AI), the Riverside City Council Tuesday established a temporary committee tasked with researching the technology and creating citywide policy recommendations.

Councilmember Steven Robillard, who proposed the group, said Riverside must prepare proactively rather than wait for AI’s impacts on government, business, and daily life. The committee, composed of Robillard, Philip Falcone, and Steve Hemenway, will meet monthly for 13 months and focus on ethical use in city government, workforce innovation, resource demands, cybersecurity, and communitywide AI literacy. Officials said the goal is to bring in experts, learn from other cities, and develop a Riverside‑specific strategy. Falcone noted the committee’s work ties directly to ongoing debates about regulating data centers, which the Land Use Committee recently addressed with a 90‑day moratorium.


Orange County, Florida

Orange County commissioners signaled support for a temporary moratorium on hyperscale AI data centers, citing concerns over water, electricity, and noise impacts.

District 5 Commissioner Kelly Martinez Semrad presented nearly 2,000 petitions and noted the county’s land use code lacks provisions to regulate such facilities. Residents warned the centers would lower property values, harm neighborhoods, and consume millions of gallons of water daily, with Orange County already facing a projected 96‑million‑gallon shortfall by 2045. Studies show U.S. hyperscale centers consumed 17.4 billion gallons of water in 2023, a figure expected to nearly double by 2028. Officials said the moratorium would give staff time to study zoning, utility loads, and environmental effects before applications arrive. The commission could revisit the issue in December after staff recommendations.

Florida Data Centers — Every Proposed Data Center in Florida
Independent tracker of hyperscale data center projects across Florida. By county, with status, scale, and community impact.

Marysville, Kansas

Marysville City Council unanimously adopted a 12‑month moratorium on data centers, halting new applications while officials study impacts and draft zoning regulations.

The ordinance defines data centers broadly, including hyperscale, cloud, AI, and cryptocurrency facilities, but excludes ordinary server rooms incidental to other uses. Council members said the pause preserves the status quo while the Planning Commission reviews citizen concerns and evaluates amendments to the zoning code. Officials emphasized the moratorium is temporary, intended to give staff time to research and recommend permanent rules.


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Leon County, Florida

Leon County commissioners unanimously advanced an 18‑month moratorium on large‑scale data centers, citing the absence of any regulations in the county’s land development code or comprehensive plan.

Leon County moves toward 18-month data center moratorium
Leon County commissioners unanimously advanced an 18-month pause on large-scale data center applications, saying existing development rules do not specifically

Officials said the pause will allow time to craft rules addressing compatibility, infrastructure, and utility demands before companies submit proposals. Commissioner Nick Maddox stressed the moratorium is not a permanent ban but a safeguard to ensure projects arrive responsibly. Commissioner Carolyn Cummings said the review must weigh water consumption, electricity demand, and whether facilities could raise residents’ utility bills, while also considering potential revenue. One complication involves a hurricane‑related exemption that could allow applications on storm‑damaged property. The final vote is scheduled for Oct. 13, with staff expected to return with findings in September 2027.


Eugene, Oregon

Eugene residents filled City Hall Sept. 15 to oppose data centers, urging councilors to impose a moratorium beyond the former Hynix site. City staff had already ruled the 1830 Willow Creek Circle campus off‑limits under E‑1 zoning, but residents said broader protections are needed.

Speakers raised concerns about utility rates, environmental impacts, and whether data centers provide enough jobs to justify their footprint. Mayor Kaarin Knudson said the city is not waiting until December to resolve the Hynix issue, stressing the zoning determination is clear. Residents demanded transparency in negotiations and definitive council votes on data center policy. The council will revisit the issue Dec. 14, with authority to update land‑use codes to regulate such facilities.


Santa Cruz, California

Santa Cruz County supervisors reject proposal for voter input on AI data centers

Santa Cruz County supervisors voted against a proposal that would have required voter approval for future AI data center projects, instead opting to study the issue further.

Supervisor Monica Martinez said policymakers lack sufficient knowledge about the technology and suggested a study session before considering regulations. Supervisor Justin Cummings, who introduced the measure, argued residents should have the final say, warning that decisions by a small board could leave communities with lasting consequences. County staff reported data centers consume large amounts of water and electricity and raise concerns about noise, traffic, and air quality. Residents echoed those worries, citing job losses and environmental impacts, with some opposing AI entirely. Cummings said he may pursue a petition drive to place the issue on the ballot despite the board’s rejection.


Raleigh, North Carolina

Raleigh officials announced plans to draft a six‑month moratorium on new data centers, joining other North Carolina cities that have paused development to study impacts.

Mayor calls for ‘careful’ approach as Raleigh considers 6-month pause on data centers
As data center discussions intensify, Raleigh Mayor Janet Cowell said a pause would give city leaders time to “have a conversation” and lower the temperature around the issue.

Mayor Janet Cowell said the pause would lower tensions and allow time for careful discussion, noting rules can quickly become outdated. City staff reported eight existing centers, most under 10,000 square feet, while larger hyperscale projects require special permits in industrial zones. The proposal follows a developer’s withdrawal of plans for a Southeast Raleigh site and echoes moratoriums already adopted in Durham, Greensboro, and Charlotte. Officials said the pause will help evaluate land, water, and electricity demands while protecting existing research and tech operations. A public hearing is scheduled for Oct. 6, with residents invited to weigh in.


📱 Social Buzz

Episode Title: AI, Energy and Climate: AI's Promise and Peril — and How to Simplify: Jim VandeHei
Episode: The DSR Network

Listen:https://traffic.megaphone.fm/TRGM7850670928.mp3


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