This week in Data Center Community Engagement and Regulations
Data center growth continues to spark debate across the country as states grapple with infrastructure demands and community concerns. Arizona’s data center boom highlights the strain on its power grid and reports about inequities faced by communities like Navajo Nation. Virginia’s natural gas pipeline expansions aim to meet energy needs while raising environmental questions, as critics call for renewable energy and stricter oversight of the industry. In Georgia, data center projects move forward despite community resistance in Clayton County and a large-scale annexation request in Covington. Meanwhile, Talen Energy is appealing FERC’s rejection of a critical agreement for an Amazon data center expansion in Pennsylvania.
Washington Post Looks at The Challenges and Community Impact of Arizona’s Data Center Boom
The state’s power grid faces unprecedented strain as Arizona experiences a rapid surge in data center development driven by Big Tech and artificial intelligence demands. While utility providers prioritize infrastructure for these energy-intensive facilities, vulnerable communities, including those in Navajo Nation and Randolph, struggle with limited or outdated access to electricity.
Due to high costs and regulatory hurdles, Navajo residents like Thomasina Nez face daily hardships, living without basic power despite nearby power lines. Meanwhile, communities like Randolph contend with health risks from expanded natural gas plants meant to meet surging energy demands. Critics argue that Arizona’s tax incentives and policies favor data centers at the expense of residents, who bear rising utility costs and environmental consequences.
Despite the state’s promise as a data center hub, with over 20 projects in the pipeline, questions persist about equitable power distribution and the long-term sustainability of Arizona’s energy infrastructure.
Read The Full Article at The Washington Post
Talen Energy to Appeal FERC Rejection of Amazon Data Center Deal
Talen Energy announced plans to appeal the Federal Energy Regulatory Commission’s (FERC) rejection of an amended interconnection agreement for an Amazon data center at its Susquehanna nuclear power plant in Pennsylvania. The utility had sold the data center to Amazon earlier this year and intended to expand its capacity from 300 MW to 480 MW.
FERC sided with American Electric Power and Exelon, which opposed the deal and blocked it in a Nov. 1 ruling. Talen filed for a rehearing last month, which FERC has yet to address. With no decision on the rehearing within 30 days, the rejection is now eligible for appeal in a U.S. Circuit Court of Appeals.
Read The Full Article at Yahoo! Finance
Virginia Natural Gas Expansion Drives Infrastructure Debate
Virginia’s data center boom is intensifying energy demands, pressuring the state’s natural gas infrastructure, and sparking discussions around pipeline expansions. A Joint Legislative Audit and Review Commission (JLARC) report highlights the need for increased capacity, citing environmental and logistical challenges.
Key developments include:
- Southeast Supply Enhancement Project (SSEP): Proposed by Williams Companies, this initiative would add 55 miles of pipeline to the 10,000-mile Transco Pipeline, with significant portions in Virginia’s Pittsylvania County and Rockingham County, NC.
- Commonwealth Energy Connector Project: Under construction, this project will link Greensville County to the Columbia Gas Virginia Reliability Project, addressing energy needs in Hampton Roads.
- Southgate Extension Project: Mountain Valley Pipeline’s expansion into North Carolina is currently being considered by Virginia’s Department of Environmental Quality.
Additionally, Balico scaled back its ambitious 84-building data center campus with an on-site natural gas plant in Herndon due to community opposition.
While supporters argue these projects ensure reliable energy for growing economic and population demands, environmental advocates warn of risks to waterways, reliance on fossil fuels, and climate change impacts. The debate underscores the delicate balance between infrastructure growth and environmental stewardship.
Read The Full Article at The Royal Examiner
Clayton County Approves Stream Buffer Variance for Ellenwood Data Center
The Clayton County Board of Commissioners approved a stream buffer variance for a proposed data center in Ellenwood, Georgia, during a Dec. 17 meeting. Commissioners Alaina Reaves, Jeff Turner, and Gail Hambrick supported the measure, while Tashé Allen and DeMont Davis opposed it.
Reaves acknowledged residents’ frustrations about the lack of community input but argued that the data center represented the “highest and best use” of the site. Davis expressed concerns regarding noise and the specific type of data center planned.
Public opposition has been a consistent theme, with residents voicing concerns about noise, traffic, impacts on water systems, and quality of life during previous hearings. Despite these concerns, the commissioners had already approved the site’s development plan in October.
The proposed data center, covering approximately 35 acres, will be located at 4350 Tanners Church Road, between Dunn and Williamson roads.
This decision highlights the balance between economic development and addressing community concerns—a critical issue in navigating local data center projects.
Read The Full Article at The Clayton News Daily
Serverfarm Seeks Annexation Into Georgia Town
Serverfarm, a global data center developer, has requested the annexation of a 98-acre property on Hazelbrand Road into Covington, GA, to advance its project. The site, currently zoned for heavy industrial use in unincorporated Newton County, features a 498,960-square-foot warehouse/distribution facility. Covington allows data centers in M-1 and M-2 zoning districts, while Newton County restricts them to the Stanton Springs Overlay.
The Covington City Council unanimously approved the first reading of the annexation petition on Dec. 16, with final approval pending. If annexed, both sides of Hazelbrand Road will fall under city jurisdiction, requiring the city to address maintenance issues, including a potentially costly culvert replacement.
Serverfarm plans to use city water and natural gas, with Georgia Power supplying electricity after upgrading local infrastructure. The facility will employ air-cooled chiller technology to minimize water usage. The development could generate $480,000–$700,000 annually in property tax revenue, making it a significant investment for both Covington and Georgia.
Josh Volk of Serverfarm highlighted the importance of metro Atlanta as a prime market for data centers and emphasized the scale of this project as their largest in Georgia. The developer already has interest from four prominent potential customers.
Read The Full Article at The Rockdale Newton Citizen
Biden Leaves Mark on Four Technology Regulation Areas
Over the past four years, the Biden administration made significant strides in technology regulation, with a focus on antitrust enforcement, data privacy, AI oversight, and export controls.
- Antitrust and Mergers:
- Landmark victories include the DOJ’s antitrust case against Google, labeling it a monopolist, and FTC’s selective but impactful merger challenges.
- Despite a new Trump administration, ongoing cases against major tech firms are expected to continue under leadership that signals sustained scrutiny.
- Data Brokers:
- Heightened regulation addressed sensitive data collection practices, national security risks, and surveillance pricing. Congress also banned TikTok due to data concerns, a decision under Supreme Court review.
- AI Regulation:
- While deceptive AI claims faced enforcement, generative AI regulation saw limited progress. Future approaches may shift under new FTC leadership with a less interventionist stance.
- Export Controls:
- Biden’s administration extended controls on advanced technologies to counter China, continuing policies from the previous Trump era. This approach underscores maintaining U.S. technological leadership.
As leadership transitions, these regulatory efforts highlight the complexity and evolving priorities of governing the tech landscape.
Read The Full Article at Tech Target
Opinion Piece Looks at Virginia’s Data Center Boom Sparks Energy Crisis Concerns
In this opinion piece, Ivy Main critiques Virginia’s rapid data center expansion, arguing it has created an unsustainable energy demand. Drawing on a recent Joint Legislative Audit and Review Commission (JLARC) report, Main highlights potential challenges, including tripling electricity consumption over 15 years, rising utility bills, and strained infrastructure. The piece underscores how policy shortcomings, local opposition to energy projects, and reliance on speculative technologies exacerbate the crisis. Main calls for greater regulation of data center growth and a shift towards renewable energy to address the looming energy supply and environmental risks.
