By Dane Artisola in data centers — 03 Jul 2026

Data Centers: Weekly Briefing // June 30 - July 3, 2026

San Marcos became the first Texas city to ban data centers, Virginia and Delaware passed ratepayer protections, and Massachusetts and New Jersey moved to strip tax breaks. Ten local moratoriums cleared across eight states, and Nashville's mayor filed to seize a data center site by eminent domain.

Photo by Geoffrey Moffett / Unsplash

**Your weekly digest of Data Center regulatory shifts and decisions.**

At A Glance 🔽

San Marcos became the first Texas city to ban data centers outright, testing home rule against state law.
Gov. Spanberger signed a Virginia energy package meant to keep data centers from driving up residents' bills, and rejoined RGGI.
Delaware's General Assembly passed a trio of energy bills, including one making data centers first cut off in a blackout.
Massachusetts kept its 20-year data center tax exemption frozen until stronger ratepayer and environmental protections are in place.
New Jersey lawmakers advanced bills to kill AI data center tax credits and redirect $125 million toward lowering power costs.
Nashville's mayor filed to seize a DC Blox site near the zoo by eminent domain, backed by a 180,000-plus signature petition.
Ten local and county moratoriums were approved across eight states, from Minneapolis and Burien to Linn County and East Fishkill's freeze through 2029.
A Texas developer offered more than $80 million for 800 rural Hill County acres, about 14 times the appraised value.

📋 This Week's Decisions

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

State Legislation

Massachusetts: Gov. Maura Healey is keeping a hold on the state's 20-year data center tax exemption, pairing the freeze with new guidance on energy and environmental standards. The pause on the sales and use tax exemption stays until protections are in place against higher gas and electric bills. An accompanying statement of expectations says projects should bring their own clean energy and avoid shifting costs to other consumers.
Virginia: Gov. Abigail Spanberger signed a package of energy legislation Tuesday meant to keep data centers and other high-load customers from driving up costs for Virginia families. One measure shields ratepayers from the cost of new infrastructure built for large users. The package rejoins the Regional Greenhouse Gas Initiative, paired with a consumer credit, and the state is adding a first-of-its-kind energy consumption tax and stricter emissions standards on backup generators.
Delaware: A trio of energy bills passed the General Assembly on the session's final day. The bills rein in what Delmarva Power can bill customers for infrastructure and mandate audits of the utility (SB 326) and push data centers to cover their own energy costs, cutting them off first in a blackout (HB 233) and requiring developers to supply all the power they use within 10 years, some renewable (HB 445). New proposals could double the state's electricity usage, with one analysis finding wholesale prices could rise as much as 80%. A separate seven-month moratorium proposal was voted down.
New Jersey: Lawmakers are moving to end a key tax break for AI data centers and steer the money toward lowering residents' power costs. Assembly Bill 5165, the End Data Center Tax Credits Act, cleared committee, and its Senate counterpart S4390 won unanimous committee approval. The measure redirects unused credits, making $125 million available to the Economic Development Authority to cut electricity costs. The push comes amid rising backlash, including complaints about a persistent hum from a new facility in Vineland.

Moratoriums Approved

Minneapolis, MN: The City Council approved a five-month moratorium on new data centers over 350,000 square feet, sending the measure to Mayor Jacob Frey. The council acted after five unnamed projects raised concerns; officials say the pause gives them time to study the industry and draft rules. Frey planned to spend several days reviewing before deciding whether to sign.
Brookville, PA: The Borough Council voted to freeze data center development for 180 days and stop projects from drawing on borough water. The move followed news of two possible developments in the Pine Creek and Rose townships, either of which could need more than 1.2 million gallons of water a day. Neither has been formally submitted.
Woodbury County, IA: Supervisors approved a one-year moratorium on data centers in unincorporated areas at a June 23 meeting, leaving existing and previously approved applications untouched. Leaders said they knew of no ongoing projects in those areas. A separate potential data center near Salix sits on land Salix annexed, so the county pause does not apply there.
Clay, NY: The Town Board adopted a one-year moratorium on data centers Monday, pausing zone changes and special permits for large-scale data centers, AI computing, and crypto mining, and paired it with a new battery energy storage law. No data centers have been proposed yet; the actions come as Clay prepares for growth tied to Micron's planned semiconductor campus. A July 7 hearing is set on a separate law authorizing community host agreements.
Burien, WA: The City Council approved an emergency one-year moratorium on new data centers at its June 29 meeting, effective immediately. Interim City Attorney Ann Marie Soto said Burien has no one on staff with data center expertise, so the definition was borrowed from Seattle. The pause gives staff time to research resource use and job creation.
Somerville, AL: The Town Council approved an 18-month moratorium on data centers Tuesday night, following pushback over a proposed bitcoin mining facility near Union Road. Mayor Darren Tucker said the town has no zoning laws, so nothing would normally stop a company from building on any parcel. During the window the town plans to confirm with the Alabama League of Municipalities whether a city without zoning can legally block a data center.
East Fishkill, NY: Officials voted on June 25 to freeze large data centers, barring the town from reviewing any facility over 20 megawatts until July 2029. The three-year pause followed Treetop Development's floated plans for a 1,000-megawatt facility, more than 10 times larger than New York's biggest existing data center. Residents filled the hearing chanting "We can't drink data," and the resolution cites higher energy bills and three area Superfund sites.
Union County, AR: County leaders approved a one-year pause on new data center development after an emergency Quorum Court meeting officials called the largest crowd the court has ever hosted. Every member voted for the ordinance, which runs July 10, 2026 through July 9, 2027, with an emergency clause skipping the usual waiting period.
Linn County, IA: The Board of Supervisors voted 2-1 to approve an 18-month moratorium on new applications to rezone property into the county's EU-3 large-scale data center district. The pause runs through Jan. 1, 2028, just months after the board adopted one of the state's most restrictive data center ordinances in February. Supervisor Brandy Meisheid said the county now has roughly 3,500 acres tied to data center development and lacks the data to judge what the community can sustain.
Paris, TN: The City Commission voted to place a temporary moratorium on data processing centers within city limits on second and final reading. City Attorney James Smith said the pause is meant to give the city time to study zoning and community impacts, a process expected to take most of a year. Residents backed the moratorium but pushed for a firm end date and stronger zoning.

Regulations Passed

San Marcos, TX: San Marcos became the first Texas city to ban data centers within its limits, defining the facilities in its zoning code and making them ineligible citywide, with council members citing water and energy concerns. The city has no data center proposed within its limits, though at least two have surfaced in surrounding Hays County. State Sen. Paul Bettencourt plans to challenge the ban as a violation of 2025's HB 2559 and the 2023 "Death Star" law; land use experts counter that HB 2559 covers moratoriums, not zoning changes. Cities including Lockhart and Kerrville are tightening zoning instead of banning to avoid lawsuits.
Sparta, NJ: The Township Council voted to prohibit data centers through Ordinance 26-11. Councilman Neill Clark said the council first looked at a matrix based on water, electricity, and noise but found it unworkable, opting for a broader prohibition that targets the largest facilities while leaving room for smaller businesses. One resident called the definition "sloppy" and pushed for a size threshold; Clark said the rules could be revisited as technology shifts.

💬 Catch Up on Discussions

woman reading book — Photo by Sincerely Media / Unsplash

DeSoto County, FL: Commissioners directed the county attorney to draft a one-year moratorium on new data center applications after nearly three hours of discussion on June 23, with participating commissioners unanimously backing it and one recusing. Any moratorium would leave existing applications untouched, including a rezoning tied to DCIP Group's planned hyperscale complex, which could cover more than 800 acres. CEO Jon Brown put daily water needs at anywhere from zero to 3 million gallons, and residents said they still lack basic information to assess the project.
Oshkosh, WI: The city is moving toward a moratorium on new data centers as residents raise water and land use concerns, following Winnebago County's 12-month pause. Council member Joe Stephenson said the pause would only limit buildings whose primary use is storing data. The Common Council is expected to take up a resolution at its July 14 meeting.
Rappahannock County, VA: More than 200 residents signed a petition seeking zoning rules to block data centers, though county officials say the current ordinance already prohibits them. The petition asks the Planning Commission and Board of Supervisors to add definitions for "data center" and "high-energy-use facility." County Administrator Garrey Curry warned that detailed regulations could backfire, making it harder to deny an application that meets every codified requirement.
York County, SC: The County Council advanced a nine-month data center moratorium on second reading during a special meeting Monday, the same night it approved a $1.5 billion biopharmaceutical incentive deal known as "Project Palmetto Rock." The moratorium halts development approvals for data centers in unincorporated York County while it studies impacts, and allows an extension. A public hearing is set for July 13.
Nashville, TN: Mayor Freddie O'Connell filed condemnation legislation to block a DC Blox data center near the Nashville Zoo, moving to take the property by eminent domain. O'Connell said Metro has a "legitimate need" for the site; permits for the AI data center are still awaiting approval, and an online petition opposing the project has drawn more than 180,000 signatures. The Metro Council is separately weighing rules barring new data centers near schools, churches, and zoos, capping the largest campuses at 500,000 square feet or 100 megawatts. Davidson County currently has 12 data centers.
Hill County, TX: A developer offered more than $80 million for over 800 acres of rural land, roughly 14 times the appraised value, for a proposed data center site. In a lawsuit against Hill County, developer RCM Hill describes four contracts signed between April 2025 and January 2026 for contiguous parcels it calls the "Aquila Site." The land was appraised at $7,100 an acre but the offer values it at about $100,000 an acre.
Nelson County, KY: County and Bardstown officials said hyperscale data centers are not welcome and are preparing a countywide moratorium as residents press for regulations. In a joint statement, the city, County Judge-Executive Tim Hutchins, and the industrial development corporation said hyperscale facilities do not fit the county's rural character. The debate intensified after the city and county announced buying 527 acres for a future industrial park, though officials stressed no data center has been proposed there.
Richmond County, NC: State regulators are drafting air permits for a $10 billion Amazon and Duke Energy data center campus in Hamlet. The Energy Way Tech campus would include 21 buildings supported by 1,600 megawatts of diesel generation, with Duke planning 57 new diesel generators to run for one year while Amazon builds backup power. The site sits in a census tract the state flags as potentially disadvantaged; a public hearing is set for July 30.
Rockford, IL: Aldermen delayed a vote on a proposed tax increment finance district on the city's south end Monday, pushing the decision to July 20. Alderwoman Gina Meeks moved to delay, wanting staff time to review protections other communities have considered. The TIF boundaries include land Monarch Energy has been preparing for a potential data center, though the vote would not approve or reject that project.
Osawatomie, KS: The developer behind a billion-dollar data center proposal is under investigation after neighbors petitioned over a dilapidated building the company owns. Alcove Development, the firm behind "Project Catalyst," owns the old Swenson Schoolhouse; neighbors cited broken windows and open doors. Alcove said it bought the property for affordable senior housing but had two tax credit applications denied. Opponents say the building's condition reinforces doubts about the developer's ability to handle a far larger facility.
Marana, AZ: A proposal to rezone more than 800 acres for a project including a data center is "far from a done deal," the town manager said. Marana bars data centers from using drinking water for cooling, and the developer said the user would buy an estimated 50 acre-feet from an irrigation district for a closed-loop system. The application, submitted in November 2025, has not yet reached the public hearing stage.
Dickson City, PA: A developer appealed the borough's zoning decision to court, seeking to build four data centers and 400 megawatts of gas power above Business Route 6. Dickson City Development LLC, linked to Kriger Construction, filed a land-use appeal June 22 challenging the borough's data center standards and asking the court to overturn the Zoning Hearing Board's May 20 decision. The board had denied appeals for each of the four data centers on May 27.
East Rockhill, PA: The Board of Supervisors authorized a revised data center ordinance that folds in resident concerns about noise and groundwater depletion. Solicitor Will Oetinger said the updated draft adds well-depletion language, expanded environmental impact requirements, fire and emergency planning, decommissioning rules, and quarterly noise reporting. The ordinance would permit data centers only in industrial districts at the Pennridge Airport; the township has not received an application.
Santa Fe County, NM: Commissioners are advancing a one-year moratorium on large-scale data center projects citing water and energy concerns. Commissioners Lisa Cacari Stone and Hank Hughes are leading the ordinance, which would pause projects while the county explores guardrails on energy, water, economic impact, and air quality. The county has yet to see a proposal but pointed to Project Jupiter in Doña Ana County.
Broken Bow, NE: Nearly 50 people turned out as the Planning Commission took up data center zoning at a public hearing Tuesday. A proposed ordinance would regulate any facility drawing more than 65 kilowatts at peak, with noise and light limits, a ban on water-intensive cooling, financial assurances, and full operator coverage of utility upgrades. The Planning Commission is recommending the City Council adopt at least a six-month moratorium while work continues.
Kline Township, PA: A former state representative was forcibly removed from a Planning Commission hearing on a planned Amazon data center campus Tuesday night, which ran under heightened security after police cited a credible threat. Todd Eachus, who lives outside the township, stepped to the podium after comment was restricted to residents and property owners, and three officers carried him out. The hearing covered Amazon's "Project Brewster," a 2.1 million-square-foot campus with nine data centers; Amazon said it could use up to 100,000 gallons of water a day.
Yukon, OK: Residents packed city hall demanding Mayor Brian Pillmore resign over a $1 billion data center Tuesday night. The city has already approved selling city-owned land to BLE Landholdings, the developer behind the campus. Organizers say they passed the 1,449 signatures the city code requires for a recall petition and plan to file before Thursday's deadline. The council did not vote on the project.
Pocatello, ID: The fight over an AI data center at the former Hoku site is headed to the City Council on July 16, when the council will hear Lex Developments' appeal of a denied conditional use permit. Hearing Examiner Kathleen Lewis rejected the application after a packed May 14 hearing, finding it fell short on public facilities, environmental impact, and public health. Lex wants seven 100,000-square-foot buildings on the roughly 59-acre site, projecting a $2.26 billion investment and 150 to 300 permanent jobs.
Festus, MO: The developer behind a proposed $6 billion data center unveiled a scaled-back design after sustained opposition. CRG, the data center arm of Clayco, cut the plan from 12 two-story buildings to four one-story buildings with a larger setback, and raised the voluntary buyout offer for the 12 nearest homes to fair market value plus 15% with a $10,000 moving allowance. Mayor Sam Richards said the changes address residents' biggest concerns; opponents say the residential location is still the problem. The city plans a public hearing in late July or early August.
Indianapolis, IN: The Metropolitan Development Commission voted Wednesday to advance proposed data center zoning rules to the City-County Council. The proposal, SU-47, would create a special use district and require rezoning, with setbacks, noise limits, operations plans, and decommissioning plans. Commissioners amended the noise cap from 55 to 65 dBA and grandfathered existing uses. If approved it would be the city's first zoning standards written specifically for data centers.
Prince George's County, MD: An anti-data center rally drew counter-protesters Wednesday night as the council prepares to vote next week on a two-year moratorium. Dozens gathered in Largo to push for a ban while a group in matching orange shirts rallied in support. A previous moratorium on AI data centers expired Tuesday. The county is home to five data centers, and County Executive Aisha Braveboy paused permitting by executive order in September 2025.
Fort Worth, TX: Residents are fighting a proposed North Texas data center that would pull up to 5 million gallons of water a day from Cedar Creek Lake, the reservoir that supplies most of Fort Worth's drinking water. Kansas-based Diode Ventures proposed the facility in Henderson County and says its site review is in very early stages. On May 21, the West Cedar Creek Municipal Utility District advanced a temporary suspension on "high-intensity water service commitments" through April 1, 2027. Diode has an incomplete application on file and no contract issued.
Missoula County, MT: Commissioners will hold a public hearing July 9 to consider interim zoning that would place a temporary pause on new data center development or expansion. The measure would affect one active proposal: Krambu's plan to open a center at the former Stimson Mill site in Bonner using existing buildings. Hundreds of residents have signed a petition raising concerns about power and water demands.

📅 Upcoming Meetings

a close up of a calendar on a table — Photo by Road Ahead / Unsplash

Clay, NY: Hearing on a law authorizing community host agreements, July 7.
Missoula County, MT: Public hearing on interim data center zoning, July 9.
Prince George's County, MD: Council vote on a two-year moratorium, week of July 6.
Indianapolis, IN: Ordinance reaches the City-County Council July 6, committee public hearing July 13, possible final vote Aug. 10.
York County, SC: Public hearing on the nine-month moratorium, July 13.
Oshkosh, WI: Common Council takes up a data center resolution, July 14.
Pocatello, ID: City Council hears the Lex Developments appeal, July 16.
Rockford, IL: Council vote on the South Rockford Industrial TIF, July 20.
Richmond County, NC: Public hearing on the Amazon and Duke air permits, July 30 (comment period ends July 31).

🌟 Most Clicked Link

A homesteading mother has become a leading voice against a proposed AI data center in rural Montana, a facility developers say could cover about 3,800 football fields.

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