From Arizona to Virginia and beyond, data center zoning and energy debates are heating up:
- Phoenix is reassessing its zoning laws to better define data center development amid land use and job creation concerns.
- Virginia’s Dominion Energy is proposing a 1-GW gas plant to support data center energy demands, but environmental groups are opposing it.
- Loudoun County is weighing a special exception for a major data center project, with strong public support but ongoing concerns over energy strain.
- Georgia saw two key legislative bills addressing power costs and data center infrastructure stall, leaving future policies uncertain.
- Minnesota is debating new tax incentives to attract hyperscale data centers, while Prince William County is considering another tax hike on the sector.
More updates include protests over nuclear expansion in Arizona, a canceled data center project in Indiana, and a Texas public hearing on tax abatements for a $500M data center.
Phoenix Revisits Data Center Zoning Policy Amid Land Use Concerns
Phoenix city officials are reworking zoning laws for data centers, citing concerns over land and energy use. With data center development surging in Arizona, the City Council has tasked Deputy City Manager Alan Stephenson with drafting clearer zoning definitions and updating land-use policies in the general plan. Officials argue that large, land-intensive data centers contribute little to job creation, making current zoning inefficient. The revised policy is expected by early summer.
Dominion Seeks Approval for 1-GW Gas Plant Amid Data Center Boom
Dominion Energy has filed for approval to build a 1-GW natural gas-fired power plant in Virginia to meet surging electricity demand from data centers. The proposed Chesterfield Energy Reliability Center (CERC) would be located adjacent to the existing Chesterfield Power Station, a shift from its original site at the James River Industrial Center. The facility, featuring four 250-MW gas turbines, is expected to be operational by 2029 and will not require new pipelines or transmission infrastructure.
Virginia remains a key hub for data center activity, with Loudoun County alone handling more than 70% of global web traffic. Dominion has cited the growing energy needs of data centers as a primary driver for the project, mirroring a broader trend across the Southern U.S., where utilities plan to add over 20 GW of natural gas capacity in the next 15 years. However, environmental groups are challenging the plan, citing pollution concerns and advocating for clean energy alternatives.
Read The Full Article at PowerMag
Public Largely Favors Proposed Cross Mills Data Center
The Loudoun County Board of Supervisors is set to decide on April 15 whether to approve special exceptions for the nearly 1 million-square-foot Cross Mills data center, proposed for a 22-acre site in Leesburg.
The project, led by JK Landholdings LLC, seeks rezoning from a joint land management area to a planned development, allowing for increased floor ratio and lot coverage. The area was designated for data center development under the 2019 Comprehensive Plan.
At the March 12 public hearing, community sentiment largely favored the project. Leesburg Supervisor Kristen Umstattd highlighted the lack of nearby residential developments and the project’s compliance with architectural and environmental standards. Supporters included Leesburg Executive Airport’s general manager, who noted that non-residential development would mitigate noise complaints, and Rev. Michelle Thomas, who praised the developer’s commitment to protecting a nearby African American burial ground.
Opponents, including environmental groups and residents, argued that Loudoun already has too many data centers, citing energy consumption and lost opportunities for more public-facing businesses. Critics like Chris Tandy expressed concerns about strain on the energy grid, while the Piedmont Environmental Council suggested alternative uses, such as restaurants or breweries, to complement nearby recreational facilities.
The Board’s decision next month will determine whether the project moves forward.
Read The Full Article at Loudon Times
Georgia’s Data Center Legislation Stalls Amid Power Cost Concerns
Two bills aimed at addressing Georgia’s rising power costs and the impact of data centers failed to advance on Crossover Day, effectively dooming their chances this legislative session.
Senate Bill 94 sought to reinstate the Consumers’ Utility Counsel’s office, which would have represented customer interests in utility rate cases. The office was eliminated in 2008, and since then, Georgia Power customers have faced multiple rate hikes. Despite passing committee review, the bill was tabled in the Senate.
Senate Bill 34 proposed requiring Georgia Power to charge data centers for infrastructure costs directly related to their energy demands. While Georgia Power argued that existing Public Service Commission rules already address cost allocation, proponents contended those measures were insufficient. The bill never made it past the Senate Rules Committee.
With both bills stalled, Georgia’s growing data center industry and its impact on electricity rates remain key issues for future legislative sessions.
Some States Loosen Laws and Offer Incentives to Attract Power Plants
As data center expansion and AI-driven computing drive unprecedented energy demand, states are racing to secure new power infrastructure. With utilities retiring coal and nuclear plants and grid reliability at stake, policymakers are rolling back regulations and offering financial incentives to attract power plant investments.
Pennsylvania Governor Josh Shapiro is pushing to fast-track large-scale power projects, potentially exiting the PJM grid, while states like Indiana, Michigan, and Louisiana explore nuclear power development. Meanwhile, Missouri and Kansas have passed legislation enabling utilities to charge customers for new power plants before they are operational, sparking concerns about increased ratepayer costs.
As competition intensifies, states are not just vying against one another but also against Big Tech, which is increasingly developing its own energy solutions. The scramble underscores the shifting power dynamics in the energy sector, with states balancing economic incentives, regulatory rollbacks, and consumer protections.
Coal-Fired Data Centers Spark Montana Energy Debate
NorthWestern Energy has responded to an inquiry from the Montana Public Service Commission regarding its plan to supply 400 MW of coal-fired electricity to two data centers near Butte by 2030. One company, Atlas Power, has been named, while the other remains undisclosed. The utility argues that serving these “large load” customers will support infrastructure investment and economic growth, but environmental concerns remain unaddressed. NorthWestern asserts that Montana law obligates them to provide service and suggests future tariff modifications to manage data center growth. The PSC has yet to discuss the response publicly.
Read The Full Article at Bozeman Daily Chronicle
Frederick County Approves Substation for Aligned Data Center Development
Read The Full Article at Frederick News Post
Protest Planned Against Proposed Arizona Nuclear Reactor
As Arizona utilities explore the feasibility of a new nuclear reactor, opposition is already mounting. The Nuclear Resister, a grassroots anti-nuclear group, is organizing a protest outside Tucson Electric Power (TEP) headquarters on March 12—the 14th anniversary of the Fukushima disaster.
TEP, along with Arizona Public Service (APS) and Salt River Project, is considering small modular nuclear reactors to help meet the state’s growing energy demands. APS, which operates the Palo Verde Generating Station, is leading the study, though no official proposal or site has been announced.
The Arizona Corporation Commission, which regulates utilities, supports nuclear power as part of a diversified energy mix. However, protest organizers argue that nuclear energy is too expensive, slow to build, and environmentally risky. Speakers at the demonstration will include long-time nuclear opponents Russell Lowes and Jack Cohen-Joppa, as well as folk musician Ted Warmbrand.
The debate highlights the tension between Arizona’s energy needs and environmental concerns, with nuclear power remaining a divisive issue in the state’s energy future.
Read The Full Article at AZCentral
Valparaiso, Ind., Mayor Halts Data Center Plan After Strong Community Opposition
Valparaiso Mayor Jon Costas announced the city would no longer pursue the feasibility of a data center on the city’s east side following a heated City Council meeting where residents strongly opposed the project. The proposed data center, by Agincourt Investments, was planned for a 180-acre site, but after significant public outcry, the developer agreed to withdraw and release their option on the land. The project was initially considered following a 2022 land acquisition, but the city’s focus shifted after costs for a sports complex exceeded expectations. The land would have needed to be rezoned for the data center to proceed, but community resistance led to the project’s cancellation.
Read The Full Article at GovTech
Lytle, TX to Host Public Hearing on Tax Abatements for $500 Million Data Center Proposal
Lytle, Texas, will hold a public hearing on March 24 regarding potential tax abatements for the $500 million Project Cinco data center, with discussions also covering the development agreement and annexation of the site. The project, a large-scale data center located near the Coal Mine neighborhood, has received positive overall feedback from a recent open house but also faced some opposition. Medina County has already approved an 80% property tax break for the first 10 years of the development.
Read The Full Article at Devine News
Prince William County Considers Tax Hike on Data Centers
Prince William County supervisors are considering raising the tax rate on data centers for the second consecutive year, with a proposed 12% increase in the “computers and peripherals” tax rate from $3.70 to $4.15 per $100 of assessed value. This follows a 72% hike in 2024, which generated an additional $54 million in local tax revenue. While the county aims to lower real estate and car taxes for residents, the increase could impact the competitiveness and investment decisions of the data center industry, according to the Data Center Coalition.
Read The Full Article at Prince William Times
Data Center Campus vs. Residential Development in Stafford County
A recent meeting in Southern Stafford County addressed concerns about the proposed Blaisdell data center campus, with some residents skeptical of its proximity to the Rappahannock River and the historic Belmont area. The project, which would bring 1.5 million square feet of data centers to a 181-acre site, is seen by developers as a more beneficial alternative to residential development due to its economic potential and reduced traffic impact. While the project promises local jobs and tax revenue, some residents remain concerned about noise, water usage, and energy costs.
Read The Full Article at Fredericksburg Free Press
Bill Proposes Sweeter Incentives for Large Data Centers in Minnesota
A bipartisan bill introduced in Minnesota seeks to extend and enhance tax incentives for large data centers, particularly those making over $250 million in equipment purchases. The bill’s proponents argue it will keep Minnesota competitive for hyperscale data centers, which are crucial for modern technology infrastructure. However, critics raise concerns about environmental impacts, including high electricity and water usage, and the bill’s potential cost to taxpayers. While supporters emphasize job creation and tax revenue, opponents question the fairness of giving substantial tax breaks to some of the world’s wealthiest companies.
Read The Full Article at Timberjay
Debating Data Center Energy Costs in Georgia
A recent op-ed, written by Drew Reynolds, argues that Georgia residents should not be forced to subsidize the electricity costs of data centers through rate hikes. Reynolds highlights that data centers consume massive amounts of electricity while creating few jobs, and recent rule changes by the Georgia Public Service Commission allow these facilities to receive rate discounts, shifting infrastructure costs onto residential consumers. He advocates for SB 34, a bill that would require data centers to pay for their electricity use rather than passing costs onto families and small businesses. While the bill did not pass this legislative session, Reynolds urges continued advocacy for fairer energy policies.
Reynolds is a volunteer with Encounter Georgia, a nonpartisan, faith-based Catholic advocacy organization focused on climate solutions, though he clarifies that the op-ed reflects his personal views.
