This week’s Zoning In features numerous updates and significant opinion pieces. Highlights include a proposed $17 billion development in Georgia that is expected to add $1.6 billion annually to the local tax base, zoning approvals for transformative AI-driven projects in Louisiana, and a high-profile lawsuit in Minnesota that raises questions about transparency and community impact.
On the opinion front, there’s growing debate over energy affordability and tax incentives, with critics challenging the role of data centers in exacerbating costs for families and local governments.
From legislative reforms to community pushback, this week’s news underscores the dynamic interplay between economic opportunity, regulatory scrutiny, and sustainability in the rapidly expanding data center sector.
Proposed Data Center Could Add $1.6B to Local Tax Base
A proposed $17 billion data center project, “Project Sail” by Atlas Development LLC, aims to rezone 833.92 acres in Coweta County, Georgia, from rural conservation to light industrial. If approved, the development could generate $1.6 billion in annual local tax revenue.
Coweta County officials have confirmed the company has initiated rezoning discussions and filed a development of regional impact form. Georgia’s favorable tax incentives, including a sales and use tax exemption for high-tech data center equipment through 2031, make the state attractive for such projects. To qualify, Coweta County data centers must invest $250 million and create 25 new jobs.
Concerns about energy consumption have sparked legislative debate. A recent bill proposing a special commission to assess energy planning for data centers was vetoed by Governor Brian Kemp, who cited risks to ongoing projects. With Georgia Power projecting a need for 6.6 GW of additional power by 2030, energy infrastructure remains a key consideration.
This project reflects the growing national trend of data center development, with Georgia joining states like Virginia, Ohio, Texas, Illinois, and Arizona in hosting these energy-intensive facilities.
Read The Full Article at The Georgia Virtue
Sierra Club Appeals Reno Data Center Approval
The Sierra Club’s Toiyabe Chapter has filed an appeal against the Reno Planning Commission’s approval of the Webb Data Center in North Valleys, citing alleged violations of public meeting laws and misinterpretations of city code.
The appeal, filed on January 3, challenges a January 2024 administrative interpretation that classified data centers under warehouse ordinances—a decision they claim was made without public notice or engagement. The interpretation was first applied during the commission’s December 18 meeting, where members allege they were unaware of the project’s true nature.
Olivia Tanager, Director of the Toiyabe Chapter, called for greater transparency and stricter regulatory guidance for data centers, emphasizing their significant energy and water demands. The group demands a halt to data center approvals until clear code revisions are implemented.
This highlights ongoing tensions between data center developments and community resource concerns.
Read The Full Article at KOLO TV
Fitzwater Administration Reworks Data Center Bill
Frederick County Executive Jessica Fitzwater has revised her administration’s proposed critical digital infrastructure bill, removing a controversial floating zone initially recommended by a data center workgroup. Floating zones, which replace underlying zoning for specific parcels, were intended to regulate data center siting with criteria such as proximity to electrical infrastructure and exclusion from preservation areas.
Fitzwater initially planned separate bills for siting/design regulations and the floating zone. However, concerns about politicizing site approvals and stakeholder feedback led to merging the floating zone’s criteria into the siting and design bill while removing council discretion.
The revised bill narrows potential data center locations, focusing on limited and general industrial lands that meet specific siting criteria. It also aims to expedite adoption by eliminating the bureaucratic hurdles of implementing a floating zone.
The updated bill will be introduced to the County Council this week, with a 90-day period for council action.
Read The Full Article at Frederick News Post
Fairfax Environmental Council Raises Water Supply Concerns Over Data Centers
The Fairfax County Environmental Quality Advisory Council (EQAC) has flagged potential risks from data centers to Northern Virginia’s water resources in its 2024 annual report. The report highlights the strain evaporative cooling systems could place on water supply and wastewater management in the region, with projections suggesting that increased use of these systems could demand 70 million gallons of water daily—nearly doubling the current water consumption in the Potomac River basin.
Key concerns include:
- Elevated sodium levels from evaporative cooling “blowdown” in the Occoquan River watershed.
- Increased burdens on water agencies to secure and treat additional water.
EQAC recommends:
- Restricting water use for data centers during droughts.
- Encouraging recycled wastewater for cooling instead of fresh water.
- Prohibiting saline-laden water discharge into areas served by the Occoquan Reservoir.
The report also urges proactive measures for Fairfax Water to address new EPA regulations on PFAS chemicals in drinking water, which could lead to nearly $500 million in upgrades by 2029, with costs potentially passed on to customers.
Read The Full Article at FxNow
Proposed $8.8B+ Pittsylvania Data Center Hits Roadblock
A proposed $8.8 billion data center campus and natural gas power plant in Pittsylvania County, Virginia, faced strong opposition at a planning commission meeting on January 7, 2025. The project, led by Balico, includes 12 data center buildings and a 3,500-megawatt natural gas power plant. Despite a scaled-back proposal on 750 acres, residents raised concerns about noise, traffic, and the destruction of rural character. The planning commission voted unanimously to recommend denial, citing a lack of transparency. A final decision will be made by the Pittsylvania County Board of Supervisors on February 18, 2025.
Read The Full Article at Virginia Business
Louisiana Wins Platinum Award for $10 Billion Meta AI Data Center Project
Louisiana has secured its first-ever Platinum Deal of the Year from Business Facilities magazine for the $10 billion Meta AI data center project in Richland Parish. This landmark initiative is hailed as a transformative investment in technology and infrastructure, positioned to uplift the state’s economy and workforce.
Key Highlights:
- Historic Project: The 4-million-square-foot data center, located on a 2,250-acre former Franklin Farm megasite, will involve over 5,000 construction workers at its peak and generate 1,000+ indirect jobs upon completion.
- Economic Impact: Average salaries will surpass 150% of the state’s per capita income, bolstered by Louisiana’s new data center incentive program.
- Infrastructure: Robust power and water resources played a crucial role in securing Meta’s investment.
- Education Partnerships: Louisiana Delta Community College is tailoring AI-focused curricula to workforce needs.
Community and Innovation:
Meta’s Data Center Community Action Grants will support STEAM education and workforce development, equipping local communities for emerging technologies.
Leadership Statements:
- Governor Jeff Landry celebrated the award as proof of Louisiana’s potential to attract high-impact investments that foster rural economic growth.
- LED Secretary Susan B. Bourgeois emphasized the state’s competitive edge in the technology sector.
Global Significance:
The award underscores Louisiana’s rising prominence as a destination for technological innovation, signaling to CEOs and site selectors worldwide its readiness for future AI and data center advancements.
Read The Full Article at BIZMagGSB
Massachusetts Sales and Use Tax Exemption for Qualified Data Centers
A new Massachusetts law (Chapter 238 of the Acts of 2024) provides a 20-year sales and use tax exemption for purchases made by certified “qualified data centers,” covering computers, equipment, software, electricity, and construction costs. The law took effect on November 20, 2024.
Key Requirements for Certification:
- Located in Massachusetts.
- Operated by the owner/lessor or an affiliated entity.
- At least 100,000 square feet in one or more buildings on a single or contiguous parcels.
- Costs at least $50 million to construct or refurbish (within 10 years).
- Maintains at least 100 jobs in Massachusetts.
Qualified data centers must also feature:
- Backup power systems.
- Fire suppression systems.
- Enhanced security (e.g., restricted access, surveillance, biometric scans).
Eligible Exempt Purchases:
- Computing and networking equipment, cooling systems, power infrastructure, monitoring/security tools.
- Software (prewritten or customized) used in the facility.
- Electricity for operations.
- Construction materials, labor, and equipment costs.
Application and Certification Process:
- Certification is issued by the Massachusetts Executive Office of Economic Development after review.
- Effective date begins on application submission or a future date (up to 5 years).
- Certifications are valid for 20 years but require a 10-year compliance review.
Revocation and Compliance:
- Certifications may be revoked if investment ($50M) or job (100 positions) thresholds are not met.
- Post-revocation, tax exemptions may be denied for future purchases.
Massachusetts joins other states in offering data center tax incentives, aiming to attract investments in the sector.
Firm to Pay City’s Data Center Review Expenses
The Port Washington Common Council has unanimously approved a predevelopment agreement with Red Granite DevCo, Cloverleaf Infrastructure’s real estate arm, for a proposed 1,900-acre data center campus in the Town of Port.
Highlights:
- Cost Reimbursement: Red Granite will cover up to $750,000 in city review costs for legal, financial, planning, and engineering services, with potential for additional reimbursements.
- Infrastructure Collaboration: The city and Red Granite will jointly plan and design public infrastructure, including roads, sewer, and water systems.
- Community Impact: Mayor Ted Neitzke noted the development’s potential to lower the tax burden on homeowners while maintaining a low-impact profile.
The project is in its initial phases, with continued public discussions and a commitment to transparency, including a forthcoming website to share updates and field residents’ questions.
Read The Full Article at Ozaukeep Press
Zoning Change Enables $2.5B Data Center Build in Louisiana
West Feliciana Parish has approved a zoning change to support the development of a $2.5 billion artificial intelligence (AI) data center by Hut 8, a data center and Bitcoin mining developer. The first phase will include two 450,000-square-foot buildings on a 611-acre site, expected to create “several hundred” permanent jobs and thousands of construction roles. Completion of the first building is targeted for late 2025, with the second by 2026.
The facility, strategically located near robust fiberoptic infrastructure and high above the flood plain, will initially require 300 megawatts of power, with future expansions potentially exceeding 1,000 megawatts. Hut 8 plans to lease the center to an undisclosed tenant, projected to invest $10 billion in equipment.
This is Louisiana’s second major AI data center announcement in recent months, reflecting the state’s appeal due to its land availability and power grid capacity. These developments highlight the region’s growing significance in AI-driven technological infrastructure and economic growth.
Read The Full Article at GovTech
Farmington Residents Push Back: Lawsuit Seeks to Halt $5B Data Center Development
Farmington residents are suing the city to halt the proposed $5 billion Farmington Technology Park, a data center project by developer Tract. The lawsuit, filed on November 29, has temporarily paused negotiations between the city and Tract.
The project involves up to 12 data center buildings across 2.5 million square feet on 340 acres, including the Fountain Valley Golf Club and nearby annexed properties. Rezoned for mixed-use commercial industrial, the site is located near two residential neighborhoods, causing residents to express concerns over setbacks, height variances, and potential community impact.
Plaintiffs like Gary and Cathy Johnson feel excluded from the decision-making process and oppose the height variance, which allows 80-foot-tall buildings and doubles the zoning limit of 40 feet. They claim community voices were dismissed, with Cathy quoting the mayor as saying, “If you don’t like it, move.”
This case underscores ongoing tensions between large-scale development and local community interests.
Read The Full Article at TwinCities.com
Consumer Energy Alliance’s Southeast Director Pens Opinion Piece on Georgia’s Regulated Utility Framework
Kevin Doyle, Consumer Energy Alliance’s Southeast Director, published a piece looking at how Georgia’s regulated utility framework is proving to be a significant economic advantage, particularly as AI and data centers drive unprecedented energy demand. The state’s stable and predictable energy market not only ensures affordable rates and reliable service but also fosters economic growth. Georgia ranks among the top 10 U.S. data center markets, with a 76% year-over-year increase in construction capacity, reaching 1,281 MW in the first half of 2024.
This success extends beyond data centers. Georgia’s regulatory environment has attracted large-scale investments like Hyundai’s $5.5 billion EV plant, creating 8,000 jobs, and Plant Vogtle, a nuclear project providing emissions-free electricity. Additionally, Georgia is a leader in renewable energy, ranking among the top states for solar capacity, a feat enabled by its supportive regulatory structure.
In contrast, deregulated energy markets in states like New York and Massachusetts face higher rates, price volatility, and reliability challenges, deterring industrial growth. Georgia’s approach demonstrates how stable regulation, infrastructure investment, and sustainability can create long-term economic opportunities.
Read The Full Piece at Highland Press
Policy Matters Ohio Takes Aim at State’s Data Center Tax Breaks
In a recent opinion piece, Policy Matters Ohio, a left-leaning think tank, took aim at Ohio’s generous sales-tax exemptions for data centers, which were initiated in 2013 and have attracted investments from tech giants like Amazon, Google, and Microsoft. However, they argue these tax breaks—amounting to nearly $1.6 billion in potential lost revenue—offer minimal job creation and could drive up electricity costs for residents. Critics argue these subsidies favor some of the wealthiest corporations without substantial public benefit and lack transparency or caps on spending. The piece calls for reforms, including increased accountability, caps on tax incentives, and measures to ensure data center growth does not burden Ohio’s power grid or residents.
Read The Full Piece at Policy Matters Ohio
Economist and Activist Argues Data Centers Could Create Energy Affordability Issues for Families
The article by Julianne Malveaux discusses the rapid expansion of data centers in the U.S. and its impact on energy infrastructure and affordability. Data centers, driven by growing demand for generative AI, cloud computing, and related technologies, are significantly increasing energy consumption. This surge poses challenges for utilities, which need to invest heavily in infrastructure upgrades to meet demand, potentially passing costs onto consumers in the form of higher energy bills.
Key points include:
- Financial Strain on Households: Data centers’ energy needs could require U.S. utilities to increase generation capacity by 26% by 2028, leading to incremental annual consumer bill increases of 1% through 2032.
- Proposed Policy Solutions:
- Implementing rate structures, like Ohio’s requirement for data centers to pay 85% of predicted energy demand, to prevent costs from falling on consumers.
- Introducing temporary taxes on high-energy users, such as data centers and cryptocurrency miners, to fund energy relief for consumers or support new infrastructure.
- Incentives for Sustainability: Encouraging data centers to adopt renewable energy sources and produce energy on-site to reduce grid strain and promote clean energy.
- Tech Industry Pushback: Companies like Amazon, Microsoft, and Meta argue that policies requiring them to shoulder more costs are discriminatory and could deter investment.
The article advocates for requiring tech companies to contribute a greater share of the infrastructure costs, given their substantial profits, to ensure energy affordability and reliability for consumers. It emphasizes the need for proactive policymaking to balance economic growth with fairness and sustainability in the energy sector.
