As the data center industry surges, state legislatures reevaluate who should bear the costs of supporting power-hungry infrastructure. New bills in Texas, Virginia, Georgia, and California seek to shift grid impact expenses from ratepayers to developers while introducing stricter regulations on energy sourcing and emergency power controls. Meanwhile, debates over permitting processes, environmental concerns, and zoning laws continue to shape the industry’s expansion from Minnesota to Maryland.
This week’s Zoning In also explores Amazon’s regulatory hurdles in Minnesota, growing community pushback in Georgia and Virginia, and Atlanta’s emergence as a top-tier data center hub. With mounting legislative scrutiny, the balance between economic incentives and regulatory oversight is rapidly shifting.
Shifting the Power Burden: States Push Data Centers to Pay for Grid Impact
As the U.S. data center boom accelerates, legislators in key states are introducing bills that could shift more power infrastructure costs onto developers rather than ratepayers. Georgia, California, Virginia, and Texas are among the states considering new regulations to address concerns about grid reliability, electricity demand, and rising costs.
Texas lawmakers, in particular, are weighing a controversial bill that would set minimum transmission fees and introduce a “kill switch” to power down large facilities during grid emergencies—sparking debate over potential national security risks. Meanwhile, Georgia is moving to prohibit subsidies for data centers, Virginia is looking to limit consumer cost burdens, and Utah is imposing stricter energy-sourcing requirements.
This legislative shift departs from the incentive-driven approach states previously used to attract data center investment. With AI-driven demand projected to triple by 2028, policymakers are grappling with how to balance economic growth, energy reliability, and consumer protection in a rapidly evolving landscape.
Read The Full Article at EENews
Amazon Must Follow Permitting Process for Minnesota Data Center Generators
Amazon has hit a regulatory roadblock in its efforts to expedite approval for 250 backup diesel generators at its planned data center in Becker, Minnesota. The state’s Public Utilities Commission voted unanimously to deny the tech giant’s request for a permitting exemption, requiring Amazon to obtain a “Certificate of Need” to justify the necessity of the generators and evaluate cost-effective alternatives.
The decision aligns with environmental advocates who argue that even off-grid power sources warrant scrutiny due to their broader impact. Meanwhile, Amazon has expressed appreciation for regulatory clarity and intends to collaborate with state leaders on future projects. The ruling raises questions about the future of Amazon’s Becker site, though Minnesota legislators are considering a bill that could exempt data centers from the Certificate of Need requirement.
With city officials and labor unions backing Amazon’s plan, the debate over regulatory oversight and data center development in Minnesota is far from over.
Read The Full Article at BringMeTheNews
Union City, GA Delays Data Center Town Hall as Activists Push Forward
Union City officials have postponed a town hall originally scheduled for Thursday, citing concerns over venue capacity. The event was meant to address resident concerns about the expansion of data centers in the area. In response, activist Wanda Mosely will lead an alternative discussion on Tuesday in nearby Fairburn, giving residents an opportunity to voice their concerns.
Tensions have been rising as local leaders debate the environmental and infrastructural impact of data centers, with council members split over a recent zoning approval. Concerns range from noise pollution and water consumption to the city’s future development priorities. While some officials see data centers as an economic asset, many residents remain skeptical, calling for greater transparency and long-term planning.
Read The Full Article at Saporta Report
Virginia’s General Assembly Session Ends with Minimal Progress on Data Center Regulation
Despite a push for statewide data center regulations in Virginia, legislative efforts fell short in the latest General Assembly session. While lawmakers introduced numerous bills to establish oversight, only a few passed, leaving regulation largely in the hands of local governments. Proponents argue that proactive policies could prevent future infrastructure and environmental challenges, but economic incentives continue to drive data center growth. With energy demands rising and concerns over grid capacity mounting, state legislators like Sen. Creigh Deeds vow to continue pushing for reforms in future sessions.
Read The Full Article at 29News
Environmental Debate Surrounds Amazon’s Proposed Data Center in Minnesota
Minnesota’s regulatory landscape is being tested as Amazon plans a new data center in Becker. The project has sparked concerns due to its reliance on 250 diesel backup generators, raising environmental questions about the facility’s power consumption. With data centers demanding vast amounts of energy, Minnesota officials are questioning how the state can balance economic development with its goals of reducing greenhouse gas emissions. The debate highlights the broader issue of powering data centers sustainably as technology evolves, with renewable energy and battery storage options emerging as potential solutions.
Read The Full Article at MPRNews
Atlanta Challenges Northern Virginia for Data Center Leadership
Atlanta is quickly becoming a leading hub for data center development, surpassing Northern Virginia in net absorption for the first time, according to CBRE’s 2024 North American Data Center Trend Report. The city’s robust power infrastructure and business-friendly environment have helped it become a hotspot for colocation and GPU-as-a-service tenants. However, the industry faces significant challenges, including power constraints and supply chain delays, that are extending construction timelines across the sector. Despite these obstacles, demand continues to surge, and developers are focusing on densifying existing facilities to meet market needs.
Read The Full Article at GlobeSt
Frederick County, MD Council Divided Over Data Center Oversight
The Frederick County Council is debating a bill that would regulate data center development, but a key recommendation to require council approval for projects—known as a “floating zone” provision—was removed. County Executive Jessica Fitzwater supports allowing data centers in properly zoned areas without additional oversight, while critics argue this could lead to unchecked expansion. A workgroup had recommended a floating zone for industrial parcels meeting specific criteria, but the revised bill instead incorporates design and siting rules without requiring council approval. The debate continues as major data center projects move forward.
Read The Full Article at WUSA9
Data Center Protest Groups Join DCD for Q&A
Speakers from the Prince William Conservation Alliance and Piedmont Environmental Council join DCD’s Matt Gooding for a deep dive into how data centers are shaping local communities. They’ll discuss the environmental, economic, and social impacts of rapid data center growth and what it means for residents, businesses, and policymakers.
Hear The Full Interview at Data Center Dynamics
Iron Mountain and DC Blox Expand in Henrico County Amid Evolving Data Center Policies
Iron Mountain and DC Blox both announced new data center projects in Henrico County, Virginia, in the same week, but their approval experiences diverged sharply. Iron Mountain’s $1 billion, 200MW campus in White Oak Technology Park was welcomed with broad support from state and local economic development groups. In contrast, DC Blox faced community opposition and withdrew its rezoning request, ultimately moving its project within an already-zoned industrial area.
Their differing experiences reflect broader regional trends. Virginia continues to be a global data center hub, but local governments are tightening regulations in response to environmental and community concerns. Meanwhile, Maryland has enacted laws to streamline approvals, though new legislation could introduce state-level environmental and economic impact assessments. As policymakers seek to balance economic growth with sustainability, these evolving regulations will shape the future of data center development.
Read The Full Article at Data Center Frontier
LN Compute Denied Permission for Georgia Cryptomining Facility
Cryptomining data center provider LN Compute has been denied permission to build a Bitcoin mining facility in Blackshear, Georgia, following unanimous opposition from the Pierce County Commission. The February 18 vote came after strong pushback from local residents citing concerns over noise pollution, energy consumption, health risks, and potential property devaluation.
Despite arguments from LN Compute’s founder, Eric Su, that the facility would generate jobs and tax revenue, the commission sided with residents. The proposed site at 1199 Cason Road would have required significant energy resources, with an estimated $6 million annual electricity bill. While Satilla REMC confirmed it could handle the power load, the facility might have faced operational restrictions during peak demand periods.
LN Compute, a Bitmain partner, has continued expanding elsewhere, recently announcing a 6,000-slot liquid-cooled mining hub and launching a 55MW hydro-cooled Bitcoin mining farm in Georgia.
This case highlights ongoing challenges for crypto-mining operations navigating local zoning regulations and community opposition.
Read The Full Article at Data Center Dynamics
From Boom to Backlash: The Shifting Landscape of Data Center Incentives and Regulations
Once welcomed with generous incentives, data centers are now facing growing regulatory scrutiny as their rapid expansion strains power grids and infrastructure. States like Virginia, Texas, and Georgia are introducing new zoning laws, tax adjustments, and permit requirements to slow development, while some local governments are pushing back against data center proximity to residential areas. Meanwhile, industry leaders are responding by co-locating private power sources and investing in nuclear energy to meet sustainability goals. Despite mounting challenges, data centers remain critical economic drivers, continuing to attract both investment and political maneuvering.
Red The Full Article at Commercial Property Executive
Could Virginia’s Data Center Slowdown Benefit North Carolina?
Loudoun County, Virginia, home to the world’s highest concentration of data centers, is considering a major zoning shift that would remove data center builders’ “by right” status. If enacted, this change—along with growing state-level concerns over power strain and community impact—could slow development in Data Center Alley.
Meanwhile, North Carolina has been quietly growing its own data center corridor, particularly around Hickory and Catawba County, where tech giants like Apple, Microsoft, and Meta have taken advantage of legacy infrastructure, tax incentives, and lower costs. However, as North Carolina balances energy demand with economic priorities, state officials remain selective in their data center recruitment, offering fewer discretionary incentives than manufacturing projects.
With Virginia reassessing its data center strategy, could North Carolina become the next hotbed for hyperscale growth? And will it welcome the influx, or will energy limitations curb expansion?
