Data center growth is driving economic change but sparking local resistance. Protests in Maryland, environmental pushback in Louisiana, and debates over cost-sharing in Ohio highlight the balance needed between development and sustainability. Dive deeper into these issues and more in this week’s report!
Data Center Growth and Its Transformative Impact on the U.S. Energy Landscape
Data center growth is rapidly reshaping the U.S. energy and economic landscape, with projections indicating data centers will consume 5%-9% of annual U.S. electricity generation by 2030, up from 4% today. As utilities and tech giants navigate power constraints and sustainability demands, location decisions are increasingly critical.
Key Findings from Upwind & JLL 2024 Data Center Report
The report identifies five fastest-growing data center hubs, driven by regional advantages like tax incentives, energy costs, and real estate affordability:
- Northern Virginia: Expected to lead with 11,077 MW future power demand.
- Phoenix, AZ: Projected capacity of 5,340 MW due to affordable natural gas and solar energy.
- Dallas-Fort Worth, TX: Forecasted 4,396 MW capacity growth, bolstered by low land costs.
- Las Vegas/Reno, NV: Anticipated nearly 1,000% growth to 3,812 MW, spurred by investments like Google’s $400M facility and electricity costs 35% below the national average.
- Atlanta, GA: Capacity expected to reach 3,125 MW, driven by a $1.8 billion Microsoft investment.
Challenges and Opportunities
Utilities are seeing significant load growth from electrification and data center demand, particularly in 15 states hosting 80% of data center capacity. While regions like the Pacific Northwest and Chicago are slowing due to geographic and cost constraints, newer hubs like Salt Lake City (699% growth to 1,271 MW) are thriving, thanks to incentives and lower costs.
Emerging events like DTECH Data Centers and AI are focusing on strategies to overcome delays, power constraints, and sustainability challenges, highlighting the growing complexity of data center development.
This ongoing transformation underscores the need for thoughtful zoning strategies to balance economic growth with grid resilience and sustainability. Stay tuned for more insights in next week’s Zoning In report.
Read The Full Article at Power Grid
Prince George’s County, MD Tables Data Center Bill
The Prince George’s County Council has voted to table CB-52 2024, a proposed bill that would simplify the approval process for data centers by exempting developers from certain preliminary planning requirements.
Community Opposition
Local residents and advocacy groups, including Fort Washington Forward Inc. and the South County Environmental Justice Coalition, voiced concerns about reducing regulatory steps. They emphasized the need for transparency, thorough reviews, and protections against fast-tracking major developments.
Proponents’ Perspective
Supporters, including county officials, highlighted the economic potential of data centers. They argued the bill would position Prince George’s County to better compete with other jurisdictions for tax revenue and economic development opportunities.
Council Decision
The Council ultimately decided to table the bill, signaling a desire for more comprehensive planning. Officials emphasized the importance of addressing infrastructure needs, particularly energy requirements, and engaging the public in determining appropriate locations for data centers.
This decision reflects ongoing tensions between economic incentives and community concerns, underscoring the need for balanced approaches in zoning and development.
Read The Full Article at DCNNewsNow
Why Communities Are Pushing Back Against Data Centers
Data centers, the backbone of our digital world, have sparked increasing controversy in local communities. While these facilities store and process the data that powers the internet, they come with drawbacks that have led to significant resistance:
- Environmental Concerns: Data centers are often seen as non-environmentally-friendly due to their immense energy consumption and the strain they place on local water and power resources.
- Visual Impact: Many find data centers unsightly, disrupting the aesthetic of residential and rural areas.
- Community Pushback: As operators seek to expand, residents in some areas are vocally opposing new projects, citing inefficiency and potential harm to their local environment and infrastructure.
This tension underscores the critical need for proactive community relations and sustainability strategies when planning data center developments.
Louisiana’s Planned Gas Plants for Data Center Spark Environmental Concerns
A proposed $5 billion data center in rural Louisiana could bring economic growth but faces criticism for plans to power it with two natural gas plants. Entergy’s $3.2 billion investment in these plants has raised environmental alarms. Critics argue renewable options like wind, solar, and battery storage were dismissed prematurely, potentially locking Louisiana into decades of fossil fuel dependency. Concerns also extend to cost allocation, which could burden residential customers as state regulators fast-track the project.
Key Quote:
“We see (the gas buildout) as a huge threat — we are at a moment where we need to be phasing out fossil fuels and not locking it in for decades longer.”
– Gudrun Thompson, Southern Environmental Law Center
Why It Matters:
This debate highlights the conflict between economic development and climate goals. With data centers projected to consume up to 12% of U.S. electricity by 2030, energy source decisions today could have lasting impacts on emissions and energy costs.
View The Full Article at Daily Climate
AES Ohio and Consumer Costs for Amazon Data Center
Overview:
A planned Amazon data center near Jeffersonville, Ohio, has sparked concerns from the Office of the Ohio Consumers’ Counsel (OCC). The OCC filed a protest with the Federal Energy Regulatory Commission (FERC), urging that residential customers should not bear the costs of AES Ohio’s $22 million transmission infrastructure upgrades for the project.
Key Details:
- Project Location and Timeline: The Amazon data center will be part of the Midwest Mega Commerce Center in Jefferson Township, Fayette County, with operations expected to begin in September 2026.
- OCC’s Protest: The OCC argues that AES Ohio’s agreement to seek “rolled-in rate treatment” could unfairly shift infrastructure costs to residential consumers if the project doesn’t achieve minimum service levels.
- Requested Assurance: The OCC demands that Amazon, as the “cost causer,” pay 100% of the transmission upgrade costs, shielding other consumers.
Background:
- Amazon plans to invest $7.8 billion in Ohio data centers by 2030, adding to the $6.3 billion invested since 2015.
- Data centers are known for high electricity demands, requiring substantial power for operations and cooling.
Local Impact:
While Amazon’s presence is an economic boon, with thousands of jobs supported, consumer advocacy groups stress the need for fair cost distribution to prevent residential rate hikes.
Next Steps:
The OCC reserves the right to challenge any cost-sharing proposals that it deems unfair, aiming to protect Ohio residents from increased electricity bills as the data center infrastructure expands.
This development highlights ongoing tensions between rapid data center growth and local infrastructure demands.
View The Full Article at Dayton Daily
Hundreds Protest Maryland Power Line Proposal
On November 13, a public meeting in Westminster, Maryland, hosted by the Public Service Enterprise Group (PSEG) to discuss its 70-mile Maryland Piedmont Reliability Project was overtaken by widespread opposition. The proposed transmission line, intended to address regional energy demand driven by new data centers, would traverse private farmland in Baltimore, Carroll, and Frederick counties.
Residents, including farmers, expressed concerns about declining property values, disruption to businesses, and insufficient compensation for land use. Protesters interrupted the meeting, displaying placards with slogans like “No Eminent Domain for Corporate Gain,” forcing PSEG to shift to a Q&A format.
Farmers raised fears about the line’s impact on agricultural and business activities, such as a planned winery. PSEG representatives claimed farming could continue under the lines but met strong pushback. Critics also condemned state leadership for inaction, with some voicing frustration at Governor Wes Moore.
The next steps involve PSEG seeking a Certificate of Public Convenience and Necessity from Maryland’s Public Service Commission, with the third and final meeting scheduled in Frederick. The controversy underscores the challenges of balancing energy infrastructure expansion with community rights and environmental concerns.
View The Full Article at American Farm
Residents Revolt Over Data Center Advisory Group’s Inaction
Residents in Prince William County, VA, have publicly criticized the Data Center Ordinance Advisory Group, tasked with revising zoning and noise regulations to address the impact of data centers on residential areas. Despite being formed two years ago, the group has made little progress, prompting six resident members to hold a press conference to highlight their frustrations.
The press event took place near the Regency Apartments in Manassas, a low-income housing complex adjacent to a STACK data center, where residents emphasized the intrusive noise and lack of protective zoning. They blame delays on county staff and the influence of data center industry representatives within the group.
Key complaints include:
- Noise ordinance delays: Despite years of discussion, no meaningful updates have been implemented to address the hum and whir of cooling equipment, which significantly impacts nearby communities.
- Zoning inaction: Residents hoped the group would create rules to keep data centers away from homes and schools, but recent updates suggest such recommendations are off the table.
- Perceived obstruction: Residents accuse Deputy County Executive Wade Hugh of slowing progress and favoring industry interests over community concerns.
County officials claim progress is being made, with a revised noise ordinance expected by May 2025 and zoning updates by December 2025. However, residents remain skeptical, calling for a renewed sense of urgency to protect neighborhoods from the unchecked expansion of data centers.
View The Full Article at Prince Williams Times
Massive Data Center Project in Western Massachusetts
A newly passed economic development bill, including a sales and use tax exemption for data centers, has unlocked a $3 billion data center project in Westfield, Massachusetts. Spearheaded by Servistar Realties and facilitated by Westmass Area Development Corp., the project will feature up to 10 buildings over 20 years, spanning 2.7 million square feet.
This initiative, the largest private-sector project in the state, received prior city approvals and tax incentives, including a power purchase agreement with Westfield Gas & Electric for below-market rates. However, the sales tax exemption, signed into law by Governor Maura Healey, was pivotal to attracting anchor tenants like Amazon, Alphabet, or Microsoft.
Construction is set to begin in 2026, with the first building completed in 18 months, potentially accelerating due to surging AI-driven demand. The project could generate $372 million in property taxes for Westfield over 40 years, provide up to $30 million annually in sales tax savings for equipment, and employ 400 full-time workers.
This development positions Massachusetts to compete with other states for tech investment, particularly in areas with municipal electricity utilities.
Read The Full Article at The Boston Globe
Talen Requests Rehearing on Rejected Amazon Data Center Power Pact
Talen Energy has petitioned the Federal Energy Regulatory Commission (FERC) to reconsider its decision to reject an agreement allowing increased power capacity for an Amazon data center co-located at Talen’s Susquehanna nuclear plant in Pennsylvania.
The agreement sought to expand the data center’s power beyond 300 megawatts. FERC denied the deal on November 1, citing concerns raised by utilities American Electric Power (AEP) and Exelon. The utilities argued that the pact might impose upgrade costs on the public and jeopardize grid reliability by diverting power from broader distribution.
Talen disputes these claims, asserting that:
- The upgrades would be privately funded.
- The data center is isolated from the public grid, avoiding cost-shifting and reliability issues.
Talen also criticized FERC for alleged legal missteps and insufficient analysis, arguing the decision undermines economic and national security interests.
Co-location arrangements like this are seen as a solution to accelerate data center build-outs by situating facilities directly at power sources, bypassing utility connection delays. However, FERC’s ruling signals heightened scrutiny of such agreements.
