This week’s Zoning In explores the evolving landscape of data center growth and regulation. Oregon, OH, approved a $17.3M land sale for a potential data center, promising economic gains, while Arizona and Virginia grapple with grid reliability challenges from rising energy demands, exploring new interconnection tariffs and renewable investments. Shenandoah County, VA, is weighing data center opportunities against infrastructure and environmental concerns, and Loudoun County continues to push back on projects combining data centers with affordable housing. Meanwhile, Michigan advances tax incentives to attract tech investments, and discussions in Virginia and Ohio highlight the role of innovative energy solutions and regional growth. Rising demand is even prompting utilities to delay coal plant retirements, reflecting the delicate balance between sustainability and energy needs.
Oregon Approves $17.3 Million Data Center Land Sale
The city of Oregon, Ohio, approved a $17.3 million agreement to sell 170 acres in its industrial park to Capacity LLC, which may transfer the property to a data center company pending project approval. The site, near Corduroy and Wynn roads, is attractive due to its access to power and transmission lines.
City officials, including Administrator Joel Mazur and Mayor Mike Seferian, highlighted the project’s potential to bring substantial property tax revenue, enhance community services, and elevate the local economy. Although data centers generate limited direct jobs, they offer significant economic and educational benefits.
Residents and leaders expressed optimism, emphasizing the project’s clean design, low traffic, and transformative potential for Oregon’s schools and public safety. Final approval hinges on due diligence, including securing adequate natural gas supply and assessing site feasibility.
Read The Full Article at Toledo Blade
According to APS Executive, Rising Data Center Loads Pose Grid Reliability, Residential Cost Risks
Rapid data center growth is pushing utilities and regulators in Arizona and Virginia to reconsider interconnection rules and cost structures to protect grid reliability and residential rates, officials revealed at the National Association of Regulatory Utility Commissioners (NARUC) annual meeting.
Arizona Public Service (APS) faces 10 GW of pending interconnection requests, raising concerns about reliability and cost impacts on residential customers, according to Jose Esparza, APS’s SVP of public policy. To manage these challenges, APS is exploring new tariffs for interconnections, plans to add 3.5 GW of renewables by 2031, and is transitioning to a formula rate structure for gradual customer rate increases.
Meanwhile, Virginia’s State Corporation Commission is examining the effects of rising large-use customers, including data centers, on utilities and ratepayers. A December workshop will consider creating a separate customer class for such users to allocate transmission and generation costs directly.
Other states, like North Dakota, are considering “off-grid” generation options for data centers to accelerate power availability while maintaining grid stability. These evolving frameworks highlight the delicate balance between supporting economic growth and ensuring affordable, reliable electricity for all consumers.
Read The Full Article at Utility Dive
Shenandoah County Considers Data Center Opportunities
Shenandoah County is exploring the potential for data centers, with discussions focused on balancing economic benefits with infrastructure and environmental impacts. Planners are awaiting the state’s Joint Legislative Audit and Review Commission (JLARC) report in December, which will guide local policy development.
Highlights from the discussion include:
- Economic Potential: Data centers in Loudoun County have dramatically increased taxable property values, offering significant revenue potential for Shenandoah.
- Infrastructure Challenges: Shenandoah’s power capacity, currently capped at 138 kilovolts, may require substantial upgrades to support data centers.
- Environmental Considerations: Officials emphasized the need to evaluate water resource demands and align with the county’s comprehensive plan, which prioritizes water conservation.
- Regional Impact: Even without direct development, Shenandoah may face challenges such as transmission line construction, as seen in Fauquier County.
The Planning Commission aims to finalize recommendations early next year, using insights from the JLARC report and regional case studies.
Read The Full Article At NV Daily
Zoning In Weekly Update: Pushback Against Mixing Data Centers with Affordable Housing in Loudoun County
Efforts to combine data centers with affordable housing in Loudoun County, Virginia, continue to face resistance, with officials recommending the denial of a second such project this year.
The most recent proposal, Keane Enterprises’ Greenview project, sought to build a 450K SF data center and 184 affordable housing units on 165 acres in Leesburg’s Oaklawn neighborhood. Despite downsizing the data center component by 250K SF and removing an electrical substation, the Leesburg Planning Commission cited community opposition, parking issues, and lack of open space as reasons to recommend rejection.
Similarly, the Innovation Gateway project in Sterling—a joint venture proposing 700K SF of data centers alongside 300 affordable housing units—faced opposition due to its proximity to a Silver Line Metro station and Loudoun’s recent move to restrict data center development.
These stalled projects reflect the county’s shifting stance on data centers as it balances housing needs with concerns over the saturation of its market, home to the world’s largest concentration of data centers.
Read The Full Article at Bisnow
Google and Virginia Policymakers Discuss Growing Data Center Demand
Google and Virginia policymakers convened at the Virginia Grid Innovation Summit in Richmond to address the increasing energy demands posed by the state’s data center growth. This private summit, co-hosted by Google and Virginia Energy, included input from Virginia Governor Glenn Youngkin, Dominion Energy, and various energy professionals.
Key Highlights:
- Energy Needs: Dominion Energy projects that data center development will more than double electricity demand in its territory, increasing residential electricity bills significantly by 2039.
- Innovation in Energy Supply: Discussions included integrating small modular reactors (SMRs), hydroelectricity, and advanced battery storage to support data center power needs.
- Grid Enhancements: Dominion Energy has upgraded transmission lines and deployed technologies to optimize electricity delivery, particularly in Northern Virginia, a hub for data centers.
- Workforce Development: Google announced a $250,000 contribution to the Virginia Energy Efficiency Council to expand energy efficiency job training across the state, addressing growing workforce demands.
The summit underscored Virginia’s position as a leading technology hub and highlighted collaborative efforts to address sustainability, infrastructure, and workforce challenges tied to data center growth.
Read The Full Article at Power Engineering
Logistix Gets Planning Commission Approval for Data Center Project in Hamilton, Ohio
The Hamilton City Planning Commission has approved a proposal by Logistix Property Group to develop a 100MW data center on a 15-acre site within the University Commerce Park, located about 20 miles north of Cincinnati.
Key details:
- Project Scope: Two-story data center spanning 310,640 sq ft, with construction slated to begin next year and take 14–16 months.
- Location Benefits: Close proximity to an existing substation, with plans for at least one additional substation.
- Cost and Site Acquisition: The $100 million Hamilton Innovation Center project was built on land acquired from the city for $65,000.
- Potential Tenants: Strong interest from colocation data center companies.
While Cincinnati is not a primary data center hub, established operators like H5, Flexential, and CyrusOne have a presence in the area.
Read The Full Article at Data Center Dynamics
Michigan House Approves Tax Incentives for Data Center Development
The Michigan House has approved a proposal to offer significant tax incentives for data center development, seeking to attract investments from tech giants like Google and Microsoft. The legislation, part of a two-bill package, exempts large data centers from sales and use taxes on their equipment through 2050. Proponents argue these facilities could bring jobs and local revenue to struggling regions, with requirements for substantial investment and above-average wages. Critics, however, cite concerns about environmental impacts, increased utility costs, and limited job creation relative to the scale of investment. The legislation now moves back to the Senate for final approval.
Read The Full Article at Bridge Michigan
Data Center Demand and Regulatory Changes Could Extend Coal Power Use
Southern Co. CEO Chris Womack acknowledged at a recent Edison Electric Institute conference that rising electricity demand—driven by data centers and other industries—may extend the operation of coal-fired plants like Georgia’s 3,450-MW Plant Bowen beyond planned retirement dates. This comes as the incoming Trump administration’s anticipated relaxation of environmental regulations reshapes utilities’ strategies.
Womack emphasized an “all of the above” approach to energy generation, balancing the need for coal with Southern Co.’s commitment to net-zero carbon emissions by 2050. Regulators will play a role in decisions, but Womack suggested Plant Bowen’s units could remain operational into the next decade.
Other utilities are similarly adjusting. Duke Energy recently extended its timeline to phase out coal to 2038, citing potential regulatory changes and power needs. Meanwhile, U.S. government and technology leaders have discussed repurposing former coal sites as data center campuses, with the Department of Energy offering support for AI-related infrastructure.
Experts, including Maksim Sonin, project that data center power demand could rise by 8–17% by 2030, driven by AI advancements. This trend may keep coal in the energy mix longer, though its role will decline as renewable energy grows.
Key Takeaways:
- Data center energy demand is influencing utilities to delay coal plant retirements.
- Southern Co. and Duke Energy are revising coal phase-out plans in response to regulatory and demand changes.
- The U.S. government is exploring coal site repurposing for data centers and AI infrastructure.
