In this week’s Zoning In, The Wall Street Journal looks at Atlanta’s surge in data center construction, driven by hyperscalers, and how it faces pushback as residents and lawmakers prioritize community-focused development near transit and urban areas. Meanwhile, Arizona emerges as a tech innovation hub with semiconductors, AI, and clean energy investments. Nationwide, states are grappling with rising energy demands from data center growth, with Pennsylvania challenging electricity cost increases, Georgia managing energy imports, and Virginia addressing infrastructure needs to support its booming data center sector. On the local level, Straban Township is advancing new zoning regulations to guide data center development.
The Wall Street Journal Covers Atlanta’s Data Center Boom Faces Pushback
Last week, The Wall Street Journal looked at Atlanta’s surge in data center construction, driven by hyperscalers like Meta, Google, and Microsoft seeking access to cheap electricity, tax incentives, and fiber-optic infrastructure. The city saw a 76% increase in data center power capacity in the first half of 2024, but local residents and lawmakers are pushing back, citing concerns over housing shortages and urban vibrancy. The Atlanta City Council recently banned new data centers near transit and the Beltline, prioritizing community-oriented developments. Despite local restrictions, construction continues outside city limits, reflecting national trends as cities like Fairfax County, Virginia, enact similar limits. With utilities struggling to meet demand and tax incentives under scrutiny, the rapid expansion of data centers raises questions about balancing technological growth with community needs.
Read The Full Article at The Wall Street Journal
Virginia’s Booming Data Centers Drive Pipeline Buildout
Virginia’s burgeoning data center industry is driving significant energy demand, prompting oil and gas companies to expand pipeline networks to bolster energy supply. As the data center sector is projected to triple the state’s power demand in the next 15 years, concerns arise about its impact on Virginia’s emission reduction targets and energy production capacity. This trend underscores the pressing need for balanced growth, prioritizing infrastructure development alongside sustainability goals.
Read The Full Article at Energy News
Straban Township Explores Zoning Districts for Data Centers
Straban Township is progressing toward new zoning regulations for data centers, aiming to establish clear guidelines before an April 7 deadline. Discussions at the planning commission’s December meeting centered on designating appropriate zones, with a focus on the EC-2 district due to its proximity to industrial facilities like the Hunterstown generating station and Adams County 9-1-1 center. Alternatives include incorporating data centers into the EC-1 district, which overlaps the existing distribution, terminal, and fulfillment (DTF) overlay, although this raises concerns about compatibility with current York Road uses. Township officials emphasized the need for adequate zoning to avoid potential claims of exclusionary practices while ensuring compatibility with existing community infrastructure. The topic will be revisited at the January 22 planning commission meeting.
Read The Full Article at Gettysburg Times
Pennsylvania Governor Challenges PJM Market Rules Over Rising Electricity Costs
Pennsylvania Governor Josh Shapiro has lodged a formal complaint with the Federal Energy Regulatory Commission, urging changes to PJM Interconnection’s market rules. PJM, the operator of the largest U.S. power grid serving over 65 million Americans across 13 states, recently announced record-high payments to power plants following its annual capacity auction.
Shapiro contends that PJM’s market price cap is excessively high, threatening to burden ratepayers with up to $20.4 billion in additional costs without significantly enhancing grid reliability. PJM attributes the spike in costs to tightening power supplies, rising electricity demand, and the impact of policy shifts and increasing data center loads.
This complaint adds to growing scrutiny of PJM’s practices, as the region grapples with balancing affordability and reliability in an evolving energy landscape.
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Read The Full Article at Reuters
Top States for Data Center Development
As the demand for data centers accelerates, certain U.S. states stand out as prime locations for these essential facilities. Virginia leads the way, hosting over 400 data centers, including notable projects like Equinix DC2 and the Prince William Digital Gateway. Texas follows with nearly 300 centers, driven by its favorable business environment and energy resources, with landmarks such as the CyrusOne DFW3 campus. California, home to Silicon Valley, ranks third with a growing market, highlighted by projects like Nautilus’s Stockton1 floating data center. Factors like access to renewable energy, tax incentives, and robust connectivity make these states the ultimate hubs for data center development.
Landowners in these regions are well-positioned to lease their properties for data centers, benefiting from platforms like LandGate’s marketplace, which connects them with tech companies seeking development opportunities.
Check out The Full List at LandGate
Balancing Growth and Costs: Virginia Weighs Data Center Expansion’s Infrastructure Challenges
In December 2024, Virginia’s State Corporation Commission (SCC) hosted a technical conference to address the infrastructure demands of the rapidly expanding data center industry. This followed a General Assembly report that highlighted the economic benefits of data centers but raised concerns about the strain on power infrastructure and potential costs to ratepayers.
Discussions focused on infrastructure cost allocation, forecasting accuracy, and strategies to manage increased demand. While Dominion Energy highlighted their robust demand forecasting and use of monetary commitments to screen speculative projects, concerns lingered about rising costs and the need for incremental infrastructure.
Proposals included creating a dedicated rate class for data centers to ensure fair cost distribution, which sparked debate over its potential discriminatory impact. Alternatives like upgrading existing transmission lines and introducing demand-response programs were explored as ways to manage growth sustainably.
As Virginia grapples with these issues, the balance between economic opportunity and equitable infrastructure investment remains at the forefront.
Read The Full Article at Loudon Now
Georgia’s Electricity Imports Surge Amid Rising Data Center and Manufacturing Demand
Summary:
A U.S. Energy Information Administration (EIA) report ranks Georgia as the fifth-largest electricity importer among U.S. states, driven by growing energy demands from new manufacturing facilities and data centers. With Atlanta experiencing a 76% increase in data center construction in 2023, the state’s demand is projected to continue surging. However, this growth highlights challenges in transmission infrastructure, renewable energy adoption, and regulatory policies.
While Georgia imports about one-sixth of its electricity annually, critics argue that utilities like Georgia Power may use projected shortages to expedite fossil-fuel-based solutions. Experts suggest expanding renewable energy investments, such as rooftop solar on warehouses, to enhance sustainability and resilience. However, utility policies and tax credit issues currently hinder solar adoption.
As energy needs grow, the debate over transmission infrastructure and inter-state energy trading intensifies. Balancing affordability, sustainability, and reliability will be critical for Georgia’s energy strategy.
Arizona’s 2025 Technology Outlook: A Hub for Innovation and Growth
Arizona is poised for a technological renaissance in 2025, emerging as a leader in semiconductor manufacturing, AI, clean energy, and more. Here’s how the state is shaping its innovation ecosystem:
Semiconductor Boom
- TSMC’s $65B investment in Phoenix will bring over 6,000 high-tech jobs, complemented by Intel’s $20B expansion in Chandler.
- Amkor Technology’s $2B advanced packaging facility and ASU’s Southwest Advanced Prototyping Hub solidify Arizona’s semiconductor leadership.
AI Innovation
- Over 700 software companies, AI-focused education programs, and the Arizona Artificial Intelligence Ecosystem Committee are driving responsible AI adoption across sectors.
- AI-powered solutions from companies like Synapse Labs are revolutionizing healthcare and government.
Clean Energy & EV Leadership
- Solar and battery innovation by companies like JA Solar and KORE Power.
- EV production is thriving with leaders like Lucid and Nikola, supported by battery recyclers like Ecobat.
Emerging Technologies
- Arizona excels in optics, photonics, and sustainable data centers, with a focus on energy efficiency and job creation.
Workforce & Policy Foundations
- STEM education initiatives and partnerships like ElevateEdAZ prepare the future workforce.
- TSMC’s expanded apprenticeship program offers new career paths for students and non-degree holders.
