This week, regulatory uncertainty takes center stage as FERC delays its decision on PJM Interconnection’s colocated load rules, with PJM defending the status quo rather than proposing a formal alternative. Analysts now expect FERC’s ruling could stretch into late 2025—impacting behind-the-meter data center plans like Talen Energy’s Susquehanna project. Meanwhile, Virginia’s legislative efforts to regulate data centers have stalled until after the 2025 elections, all but ensuring the issue will become a campaign flashpoint. In Niagara Falls, an economic impact study projecting major benefits from a proposed $1.5B data campus is under fire from city officials and residents skeptical of its assumptions.
Despite economic promises, local pushback also halted a 554-acre data center proposal in Indiana. At the same time, Albemarle County, VA approved new zoning limits for data centers, including strict size caps and water use rules. Nationally, Rep. Suhas Subramanyam is calling for a federal data center strategy, and Minnesota introduced a bill that could become a blueprint for environmental oversight. Add in federal incentives for AI-ready campuses, new tariffs threatening cloud growth, and a $2.1B Fort Worth project up for a vote—and it’s clear the data center landscape is facing a regulatory reckoning.
FERC Review of PJM Colocation Rules Slows as PJM Backs Status Quo
The Federal Energy Regulatory Commission (FERC) ‘s timeline for approving new rules around colocating large electric loads—like data centers—at power plants in PJM territory may now extend past mid-year. PJM Interconnection responded to FERC’s February “show cause” order by defending its current rules as just and reasonable, rather than submitting a formal new proposal. Instead, PJM presented five conceptual options, favoring front-of-the-meter arrangements to ensure cost recovery and grid reliability.
Analysts say the absence of a definitive proposal could delay FERC’s decision until late 2025. Capstone, Morgan Stanley, and ClearView Energy Partners all indicated the regulatory process could remain fluid for several more months.
PJM’s preference for network load designations and demand response participation may disadvantage proposals like Talen Energy’s data center colocation at the Susquehanna nuclear plant, which leans on behind-the-meter models. Stakeholder responses to PJM’s filing are due by April 23, 2025.
Read The Full Article at Utility Dive
Virginia’s Data Center Debate Moves to 2025 Elections
Governor Glenn Youngkin’s amendment to the lone surviving data center planning bill has effectively sidelined legislative efforts to regulate Virginia’s booming data center industry until after the 2025 elections. The amendment, which weakens requirements for local impact studies, is expected to result in the bill’s failure.
Data centers are already a contentious issue—particularly in Prince William County—and candidates on both sides are preparing for it to be a major election topic. Critics argue that unchecked expansion will drive up energy costs and impact residents’ quality of life, while industry advocates highlight the sector’s tax revenue and job creation.
As all 100 seats in Virginia’s House of Delegates and the governorship are up for election this fall, the future of data center development in the state hangs in the balance.
Consultant Defends Data Center Study as “Middle-of-the-Road” Amid Local Skepticism
A recent economic impact study of the proposed $1.5 billion Niagara Digital Campus—slated for Niagara Falls’ South End—projects nearly 1,000 jobs annually and over $414 million in tax revenue over 20 years. However, the study, authored by MRB Group’s Michael N’dolo, faces pushback from city officials.
Mayor Robert Restaino called the study’s conclusions “pretty enthusiastic” and “unsubstantiated.” At the same time, N’dolo defended the report, claiming even half of his projections would be better than current alternatives in the city. He described the assumptions used as “middle-of-the-road” and cited industry-standard metrics for job calculations.
Though the study promises significant long-term benefits—including an average $730 annual tax relief for homeowners—its lack of confirmed tenants and aggressive buildout timeline (nine buildings in nine years) have added to community skepticism. The debate highlights a common theme in data center development: navigating between bold economic promises and the cautious realism of local governance.
Read The Full Article at Niagara Gazette
Kosciusko County Plan Commission Rejects 554-Acre Data Center Proposal Amid Strong Local Pushback
The Kosciusko County Area Plan Commission (APC) unanimously voted against a proposed 554-acre data center near Leesburg, Indiana, following significant public opposition. The vote came after over 20 residents voiced concerns about traffic, noise, water and energy usage, light pollution, and loss of farmland—opponents say that contradict the county’s comprehensive plan. Supporters, including the Kosciusko Economic Development Corporation, highlighted potential economic benefits such as infrastructure improvements and an estimated $200 million in post-abatement tax revenue. Despite this, the Commission sided with residents, many of whom are generational farmers, emphasizing the protection of agricultural land. The final decision now rests with the Kosciusko County Board of Commissioners, who will vote on April 22.
Read The Full Article at WANE.com
Virginia Congressman Pushes for National Data Center Strategy Amid Growing Concerns
Rep. Suhas Subramanyam (D-Va.) is urging Congress to create a national strategic plan to address the local impacts of rapid data center growth. Speaking before the House Oversight Committee, he cited Northern Virginia—home to over 200 data centers and 100 more planned—as a “cautionary tale.” Subramanyam warned of increased utility costs, energy infrastructure strain, loss of green space, and declining air quality, highlighting reports that 10 data centers can consume more energy than Washington, D.C. He emphasized the long-term consequences for communities without coordinated national planning, noting Virginia’s rising energy imports and projecting household utility bill hikes of up to $276 annually.
Read The Full Article at Griffin Daily News
Albemarle County Sets New Limits on Data Centers
Albemarle County, Virginia has enacted new regulations to control the growth and impact of data centers. On April 2, the Board of Supervisors unanimously approved an ordinance capping data center size at 40,000 square feet in industrial zones. Projects exceeding that limit will now require board review. In commercial zones, all data centers will require a special use permit. The ordinance also introduces standards for water usage, noise, setbacks, and design, including a 200-foot buffer and requirements for closed-loop or recycled water cooling systems. While some supervisors pushed for even stricter rules, others noted the size limit already mirrors large retail buildings. The ordinance marks the first phase of a broader plan to address data center development in the county.
Read The Full Article at 29 News
Minnesota Proposes Groundbreaking Bill to Regulate Data Center Water and Energy Use
Zoning In Summary:
A new Minnesota bill introduced by Rep. Patty Acomb (DFL-Minnetonka) aims to impose some of the strictest data center regulations in the country. The legislation would mandate data centers to use at least 65% carbon-free energy, disclose electricity and water usage, and pay annual fees up to $4 million to fund conservation programs. It also calls for full environmental impact studies and transparency around construction materials.
The bill reflects growing scrutiny from lawmakers and environmental groups about the true costs and benefits of the booming data center industry. While Governor Tim Walz’s administration expressed support, utilities and industry groups, including the Data Center Coalition, voiced concerns over feasibility, trade secret exposure, and increased costs. With both sides divided and the state legislature closely split, a compromise will be essential as pressure mounts over balancing tech growth with sustainability.
Key takeaway: Minnesota is becoming a frontline in the national debate over data center resource usage, with legislation that could set a precedent for transparency, sustainability, and environmental oversight.
Read The Full Article at GovTech
Tariff Tensions Threaten Big Tech’s Data Center Boom
President Trump’s newly imposed tariffs on tech imports from China, Taiwan, and South Korea—ranging from 25% to 34%—may disrupt Big Tech’s aggressive investment in U.S. data centers, especially those tied to AI infrastructure. Industry analysts warn that increased costs for essential hardware could force tech giants like Microsoft, Amazon, and Alphabet to scale back or delay expansion plans. Projects like the $500 billion Stargate initiative, involving OpenAI, SoftBank, and Oracle, face growing uncertainty. While semiconductors were exempted for now, circuit board assemblies may not be, leaving the full cost impact unclear. Cloud providers and chipmakers saw stock declines in response, with analysts predicting short-term spending shifts and longer-term slowdowns in AI and cloud infrastructure buildouts across the U.S.
Read The Full Article at Reuters
DOE Fast-Tracks Data Center Expansion on Federal Land with 16 Identified Sites
The U.S. Department of Energy has released an RFI outlining 16 federal sites primed for rapid data center development, signaling a strategic push to support AI infrastructure. These locations boast existing energy assets and the potential for expedited permitting—including nuclear and gas generation—making them ideal for high-density computing.
Notable among them is a proposed 1GW data park near Argonne National Laboratory outside Chicago, benefiting from state tax incentives. Other sites include Brookhaven National Lab (NY), Los Alamos (NM), and the Flatirons Campus (CO), which could see a 100MW deployment as early as this year. The initiative, continuing efforts from both the Biden and Trump administrations, underscores the federal government’s intent to catalyze AI-readiness by 2027 through infrastructure built on government-owned land.
Read The Full Article at Data Center Dynamics
West Virginia House Approves Microgrid Incentive Bill for Data Centers
The West Virginia House has passed House Bill 2014, the Power Generation and Consumption Act, aimed at incentivizing microgrid construction to support large-scale data centers. The bill, proposed by Governor Patrick Morrisey, allows data center developers to create independent microgrids and sell up to 10% of the generated power on the wholesale market. It also establishes the High Impact Data Center Program for facilities with a critical IT load of 50MW or more, effective July 1, 2025. While earlier renewable energy requirements were removed, the revised bill now allows use of coal, gas, and other fuels—an appeal to the state’s natural resource base. The bill now heads to the Senate and follows recent off-grid energy project partnerships aimed at powering data centers with natural gas and methane.
Read The Full Article at Data Center Dynamics
Fort Worth Eyes $2.1B Data Center Campus by Global Builder ACS Group
The Fort Worth City Council is reviewing a proposal for a $2.1 billion data center campus on 107 acres of already-zoned industrial land in northwest Fort Worth. The five-building project proposed by global infrastructure developer ACS Group would create 37 high-paying jobs (averaging $150K/year) by 2034 and potentially generate $57.9 million in new tax revenue. The City Council will vote April 8 on the project’s proposed 10-year tax abatement. ACS plans to buffer residential areas and implement a water recycling system to address noise and water usage concerns. Fort Worth’s data center footprint continues to grow, with this project joining a cluster that includes Meta’s $1B campus nearby.
