Data Centers: Weekly Briefing // Jun 1 - 4, 2026

This week on Data Centers: California and North Carolina advanced major data center bills, New York is poised to enact the first statewide moratorium, and Monterey Park voters backed California's first city-level ban. Oracle and OpenAI broke ground on a $16B Michigan campus.

Data Centers: Weekly Briefing // Jun 1 - 4, 2026
Photo by Geoffrey Moffett / Unsplash
Your weekly digest of Data Center regulatory shifts and decisions.

At A Glance 🔽

  • California's Senate passed SB 886 and SB 887 to make data centers cover their own grid costs; New York lawmakers are poised to enact the nation's first statewide construction moratorium.
  • North Carolina's House voted 69-44 for the "Ratepayer Protection Act," pairing data center rules with a nuclear power mandate.
  • At least nine communities approved moratoriums this week, from Reno's extension through 2027 to two-year pauses in Cedar Hill, TN.
  • Monterey Park, CA voters backed Measure NDC with 86.7% support, on track to be California's first city-level data center ban.
  • Oracle, OpenAI, and Related broke ground on a $16 billion, gigawatt-scale campus in Saline Township, MI.
  • Virginia Beach's council voted to reject all future large-scale data centers; La Pine, OR and Hoffman Estates, IL turned down specific projects.
  • Niagara Falls, NY approved a settlement clearing a $1.48 billion data center after a years-long fight.
  • New Jersey, Pennsylvania, and Vermont saw major state-level action, while a 1,000-acre gigawatt complex surfaced in Wythe County, VA.

📋 This Week's Decisions

A wooden gavel rests on a dark surface.
Photo by Sasun Bughdaryan / Unsplash

State Legislation

  • California: The state Senate passed SB 886 and SB 887, a pair of bills meant to make data centers cover their own electricity infrastructure costs instead of passing them to ratepayers. SB 886 directs the CPUC to set a special tariff recovering connection costs from the tech companies, while SB 887 offers faster environmental review for developers that meet strict water, clean energy, and infrastructure-funding criteria and clarifies that data centers are not exempt from CEQA. Both head to the State Assembly.
  • North Carolina: The House voted 69-44 to pass a rewritten Senate Bill 730, now titled the "Ratepayer Protection Act". It lets the Department of Environmental Quality set water-use standards but also bars retiring baseload power plants until they are replaced with nuclear resources, a provision Democrats argued bolts energy policy onto a data center bill. It now heads to the Senate.

Statewide Bans & Failed Vetoes

  • New York: State legislators are poised to pass a one-year moratorium on new AI data center construction, which would make New York the first state in the nation to halt the facilities. The bill from Sen. Kristen Gonzalez and Assemblymember Didi Barrett would block construction for 12 months during an 18-month impact study, require renewable sourcing rising to two-thirds by 2035, and apply prevailing-wage standards. Gov. Hochul has voiced opposition, calling siting a local matter.
  • Vermont: House Democrats fell seven votes short of overriding Gov. Phil Scott's veto of H.727, which would have triggered Act 250 land use review and strict water and energy permitting for large AI data centers.
  • Monterey Park, CA: Measure NDC pulled 86.7% support in early returns, putting the city on track to become the first California city to institute a data center ban. The measure grew out of opposition to a project proposed late last year and requires a simple majority to pass.

Moratoriums Approved

  • Reno, NV: The City Council voted to extend its moratorium on new applications through August 31, 2027, with the pause unable to lift until new rules are added to city code. Reno's six existing data centers are unaffected.
  • Howard County, MD: The County Council passed a moratorium running until November 2027 to modernize regulations last updated around 1993. CB31-2026 now heads to County Executive Calvin Ball.
  • Cedar Hill, TN: The rural Robertson County community imposed a two-year moratorium on data centers and crypto mining, with Mayor John Edwards citing water and drought concerns and a fight over three proposed facilities just across the state line in Franklin, KY.
  • McMinnville, TN: The Board of Mayor and Aldermen approved an 18-month moratorium after 90 minutes of comment, choosing a pause over a ban so future rules stay legally defensible. The ordinance also covers Bitcoin mining and microchip manufacturing; a second reading is set for the next meeting.
  • Scarborough, ME: The Town Council imposed a 180-day moratorium applying retroactively to any application filed on or after April 1, following developer Daniel Dickinson's rejected master plan for a 52-acre Scarborough Technology Park.
  • Westbrook, ME: The City Council approved a 180-day moratorium, joining a wave of Maine towns acting after Gov. Janet Mills vetoed a statewide ban in April.
  • Grove City, OH: The Council approved a one-year moratorium targeting a 310-acre campus from Headwaters Site Development and Stream Data Centers, creating a task force to report within six months. A Headwaters co-founder later said the company would not sue.
  • Ashwaubenon, WI: The Plan Commission adopted a 12-month moratorium on hyperscale data centers, as Brown County weighs a similar countywide halt.
  • Augusta, GA: Commissioners approved a 49-day moratorium to update a zoning plan untouched since 1963. The pause lands as QTS pursues a $2 billion campus near the Haynes Station neighborhood.
  • Filer Township, MI: Trustees adopted a one-year moratorium as a precaution, with Supervisor Terry Walker noting the township has received no application.
  • Daviess County, KY: The Fiscal Court approved a one-year moratorium after speculation about an Owensboro project drew dozens of residents to consecutive meetings.
  • Merrillville, IN: The Town Council passed a one-year moratorium running June 1 through May 31, 2027, with leaders wanting to learn from a campus under construction in neighboring Hobart first.
  • Hillsborough, NC: The town board enacted a 60-day moratorium on AI data centers and data mining, joining recent votes by Orange County, Chatham County, and Durham City.

Regulations Passed

  • Little Rock, AR: The Board of Directors passed a data center ordinance under Arkansas's Act 851, which bars outright bans. It prohibits groundwater cooling, requires noise monitors, shields residents from utility cost increases, limits diesel backup testing, and confines hyperscale facilities to industrial zones.

Projects Approved

  • Saline Township, MI: Oracle, OpenAI, and Related Media broke ground on a $16 billion data center, a 1 GW campus dubbed "The Barn" with Gov. Gretchen Whitmer attending. The first phase is expected to go live in early 2027; residents and environmental groups have sued over the development.
  • Niagara Falls, NY: The City Council approved a settlement ending a years-long dispute and clearing Niagara Falls Redevelopment to build a $1.48 billion data center. The city will pay NFR more than $4 million tied to donated property in exchange for land near Falls Street and John Daly Boulevard.

Projects Denied/Withdrawn

  • Virginia Beach, VA: The City Council voted to reject future large-scale data center development after months of opposition. Existing colocation facilities will keep operating, and the city still wants connecting infrastructure for four new transoceanic fiber cables. The resolution still needs to clear the planning commission before a final vote.
  • La Pine, OR: The city council rejected a 20-megawatt data center from developer Boxminer.io after a packed meeting, with the city manager citing millions in discrepancies between the developer's revenue projections and the city's. The 20-megawatt draw is about 15 times the household electricity use of a town La Pine's size.
  • Hoffman Estates, IL: The Plan Commission voted 4-2 to reject a rezoning for a data center, after the same developer had already been turned away in Naperville. Two other data center sites are already under construction in the village.

💬 Catch Up on Discussions

woman reading book
Photo by Sincerely Media / Unsplash
  • New Jersey: Gov. Mikie Sherrill rolled out four proposals to tighten oversight in a state hosting more than 80 facilities. The core bill would require operators to contract directly with power generators and absorb grid upgrade costs, while a companion Bill S2274 would mandate energy and water disclosure. The plan also backs statewide municipal-agreement standards and prevailing-wage union labor.
  • Pennsylvania: A GOP-backed proposal from Rep. Marla Brown would prohibit building data centers on prime farmland, joining other measures to define data centers in the Municipalities Planning Code and mandate community benefits agreements. The Pennsylvania Farm Bureau is awaiting her formal proposal.
  • Cheyenne, WY: Microsoft added another 420 acres to its planned expansion, just weeks after announcing a 3,200-acre footprint that would triple its city presence. The company held a voluntary meeting with nearby landowners under a new "Community First Infrastructure" banner that pledges to end NDAs with local governments.
  • Wythe County, VA: Charlotte-based TAC Data Centers plans a gigawatt-scale complex of nine to 11 buildings on about 1,000 acres off I-81, needing more than 1,000 megawatts. Because the county has no zoning, the project will not require rezoning. It is the second data center proposed for the county, after Solis Arx's planned development.
  • Bell County, TX: More than 40 residents spoke at a packed workshop as eight data centers are proposed in the Temple area. Commissioner Louie Minor is proposing a moratorium; County Judge David Blackburn noted Texas counties lack zoning authority and outlined a "term sheet" of conditions instead.
  • Boyd County, KY: A town hall over TeraWulf's proposed Muskie Data Campus drew an emotional FIVCO-region turnout. TeraWulf plans to acquire nearly 300 acres at the East Park Industrial Center, using a closed-loop water system, with first phase targeted for 2028.
  • Nassau County, FL: Commissioners launched a fact-finding committee while weighing a moratorium of up to 12 months. The debate intensified after NextNRG announced it would lease 1,600 acres in the county.
  • Holmes County, FL: Commissioners moved forward with a one-year moratorium and asked the county attorney to draft a second ordinance banning AI data centers outright, after most speakers pushed for a permanent ban. Two public hearings are required before it becomes final.
  • Hermantown, MN: The City Council voted 4-1 to expand the Urban Service Boundary in its 2045 plan, drawing protest from residents fighting a proposed Google data center. City leaders said the change, which extends sewer and water to the Adolph neighborhood, would have happened regardless of Google's project.
  • Big Beaver Borough, PA: A town hall on a proposed 382-acre Switch data center campus drew a capacity crowd with police on hand and media barred from the room. Switch presented plans for three buildings to replace the closed Pitt Race racetrack.
  • Flint, MI: A City Council committee advanced a one-year moratorium in a 5-1 vote, halting new applications, permits, and reviews for 12 months. The measure now moves to the full City Council.
  • Imperial County, CA: Supervisors weighed a resolution to end "by-right" approval for data centers, then tabled it for two weeks. The draft would subject projects to discretionary review and CEQA, with a 1,000-foot setback from homes, schools, and hospitals.
  • Denton, TX: The City Council took a first step toward a possible moratorium, directing staff to gather information. Denton already hosts two AI data centers. The mayor's seat and a Place 5 seat were empty during the vote, both in runoffs through June 13.
  • Allentown, PA: The City Council voted to table Bill 20, a zoning ordinance, after nearly four hours of testimony from residents who argued it did not go far enough. Council directed its solicitor to review whether a curative amendment could pause new applications for 180 days.
  • Box Elder County, UT: Officials rejected three applications seeking to put data center referendums on the ballot, ruling the commission's decisions were administrative actions ineligible for referendum. The citizen group Box Elder Accountability Referendum plans to challenge the decision in court.
  • Brookhaven, NY: The Town Board moved to advance an 18-month moratorium after community outcry in Yaphank. Supervisor Dan Panico said there are no current plans for a facility, though an entity is working with NYISO and LIPA on a potential application.

📅 Upcoming Meetings

a close up of a calendar on a table
Photo by Road Ahead / Unsplash
  • Nassau County, FL: Final hearing on a moratorium of up to 12 months, June 8.
  • Merrillville, IN: Northwest Indiana Forum educational meeting, June 11.
  • Bell County, TX: Commissioners Court vote on a moratorium, June 15.
  • Holmes County, FL: Next public hearing on the moratorium and proposed ban, June 16.
  • Imperial County, CA: Supervisors take up the revised "by-right" proposal in roughly two weeks (mid-June).
  • Allentown, PA: Solicitor review of a possible 180-day curative amendment ahead of the June 17 meeting.
  • Boyd County, KY: TeraWulf to host its own town hall on the Muskie Data Campus, June 17.
  • Augusta, GA: QTS community meeting at Belair Elementary, June 24.
  • Brookhaven, NY: Town board vote on the 18-month moratorium following the July 16 meeting.

👀 In case you missed it...

This week in the Data Center space.

Read something interesting from this weekly briefing? You can read more about it below.

Data Centers: Daily Notes | June 4, 2026
North Carolina ties data center rules to a nuclear mandate, three towns slam the brakes with moratoriums, and a gigawatt-scale campus lands in rural Virginia.
Data Centers: Daily Notes | June 3, 2026
New York moves toward a nation-first statewide moratorium, Virginia Beach unanimously bars future data centers, and Monterey Park voters appear set to enact California’s first city-level ban.
Data Centers: Daily Notes | June 2, 2026
Reno extends its data center pause to 2027, Vermont Democrats fall short of overriding Gov. Scott’s veto, and Oracle, OpenAI, and Related Media break ground on a $16 billion Saline Township campus.
Data Centers: Daily Notes | June 1, 2026
Microsoft enlarges its Cheyenne footprint by another 420 acres, California’s Senate moves to make data centers cover their own grid costs, and four more communities slam the brakes with moratoriums or outright rejections.

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