This week in data center drama: community clashes, regulatory shakeups, and a growing call for accountability.
In Alabama, Meta’s Huntsville campus is earning praise for its low noise levels, while Bessemer residents are suing to stop a $14B facility they say threatens their health and quality of life. In Indiana, a 95-year-old orchard is fighting to protect its rural charm. And in West Virginia, a new law stripping local zoning control is being slammed as “mafia economics.”
Across the U.S., states are wrestling with how to support data center growth without sacrificing sustainability or local input. Ohio is speeding up energy approvals. Oregon just passed a bill to make data centers cover energy infrastructure costs. And privacy enforcement is leveling up, with a new multi-state “supergroup” of regulators. As power demands and public scrutiny grow, the data center industry is being forced to adapt—fast.
Huntsville Residents Say Data Center is Quiet Neighbor, While Bessemer Project Faces Lawsuit and Pushback
As Bessemer, Alabama, faces growing community opposition to a proposed 4.5 million square foot data center, residents near a similar facility in Huntsville are sharing a different story. Homeowners living adjacent to Meta’s 3.5 million square foot data campus report minimal noise, with sound readings near the facility ranging between 35–50 decibels—equivalent to light rain or a quiet library. Despite the low noise, some lament a loss of rural character.
In contrast, the Bessemer proposal has drawn sharp criticism from nearby residents over potential 24/7 noise, pollution, and health risks. Concerns have culminated in a lawsuit by Rock Mountain Lakes residents, resulting in a preliminary injunction that delays a rezoning vote for over 700 acres. The legal case—and the fate of the $14 billion project—remains unresolved.
Ohio Fast-Tracks Review of Natural Gas Plant Supporting Licking County Data Center
The Ohio Power Siting Board has unanimously approved an expedited review for PowerConneX’s upcoming application to build a 120-megawatt natural gas-fired generation facility in Licking County. The facility is intended to support a nearby data center development, signaling the state’s willingness to accelerate energy infrastructure tied to data center growth. The decision was part of a broader set of rulings, which also included the rejection of a proposed solar project in Stark County. The move reflects growing tensions between different forms of energy development as data center demands intensify.
Read The Full Article at Tate Affairs
Hancock County Orchard Pushes Back on Proposed Data Center
In Hancock County, Indiana, a beloved 95-year-old agritourism destination, Tuttle Orchards, is rallying public support to oppose a proposed 775-acre data center that could be built adjacent to its property. Known for its award-winning apples, cider, and educational farm experiences, the orchard fears the development would damage the rural atmosphere and family-friendly environment it has cultivated for generations. Although current plans place the data center slightly away from the farm, future expansion zones could bring it right up to the orchard’s edge. In an email to customers, Tuttle Orchards urged residents to sign a petition ahead of a May 27 public hearing. While developers say they are working with the orchard to address concerns, the final decision rests with Hancock County commissioners following a recommendation from the planning commission.
Read The Full Article at WishTV
Loudoun County Revisits Scope of Phase 2 Data Center Regulations
Loudoun County’s Board of Supervisors has voted to send the second phase of its data center regulatory overhaul to the Transportation and Land Use Committee (TLUC) for further review, sparking concerns over additional delays. The second phase—originally intended to focus on environmental design standards, sustainability, on-site power, and utility infrastructure—follows Phase 1’s key policy change, which eliminated by-right data center development in most areas while grandfathering certain applications.
The move, spearheaded by Supervisor Laura TeKrony, aims to refine the initiative’s scope and potentially introduce broader stakeholder engagement, including a proposed innovation summit. However, some board members expressed frustration over the timeline, warning that further committee review could push completion into late 2026. Despite concerns, the board unanimously approved the referral, signaling a more cautious and deliberate approach to shaping the county’s future data center footprint.
Read The Full Article at Loudon Now
Mafia Economics?”: West Virginia Residents Slam New Data Center Bill for Gutting Local Control
West Virginia’s newly passed House Bill 2014 has sparked fierce backlash from Tucker County residents and local leaders who say the legislation strips communities of their authority over high-impact data center development. The bill—championed by Gov. Patrick Morrisey and poised to become law—preempts local zoning rules, diverts a majority of property tax revenue away from counties, and allows gas-powered data centers to proceed with limited oversight. Critics liken the bill’s approach to “mafia economics,” with out-of-state companies reaping profits while localities shoulder the environmental and economic risks.
Concerns are particularly high in Tucker County, where a proposed data center by Virginia-based Fundamental Data LLC near Blackwater Canyon could bring air, noise, and water pollution close to schools and tourist destinations. At a packed community meeting, residents and officials decried the state’s move as undemocratic and warned that similar projects may proliferate across the state with little community input or benefit. With echoes of Virginia’s own debates over power and pollution impacts from data centers, West Virginians fear the legislation prioritizes short-term tax incentives over long-term community health and sustainability.
Read The Full Article at GovTech
Privacy “Supergroup” Formed—What It Means for Data Centers
A newly formed “Consortium of Privacy Regulators,” announced April 16, brings together attorneys general from seven states—California, Colorado, Connecticut, Delaware, Indiana, New Jersey, and Oregon—plus the California Privacy Protection Agency to coordinate enforcement of state consumer privacy laws. While this multi-state alliance won’t harmonize the laws themselves, it is expected to amplify enforcement of shared elements, such as data access, deletion, and opt-out rights.
For data centers, this development signals increasing regulatory scrutiny over how personal data is managed, stored, and secured—especially for facilities that support clients handling consumer data across multiple jurisdictions. Operators and developers should revisit privacy practices, security protocols, and client contracts to ensure compliance with overlapping regulations. The move also raises the stakes for incident response readiness, as coordinated investigations into breaches and noncompliance could become more frequent and far-reaching.
Title: “Opinion: In Arizona’s Dry Future, Data Centers and Industry Must Confront the Limits of Growth”
In a recent opinion piece for AZ Central, Cody Hays, a PhD student at Arizona State University’s Walter Cronkite School of Journalism, challenges Arizona’s current growth trajectory amid a worsening water crisis. Hays argues that while major industries like agriculture, tech, and data centers—including operations by Google, Microsoft, Intel, and TSMC—consume vast amounts of water, many Arizona residents, particularly in rural areas and underserved communities, are struggling without reliable access to clean water.
Hays contends that voluntary sustainability pledges and high-profile infrastructure proposals like water imports or desalination distract from the real issue: a lack of political will to implement meaningful, enforceable water-use reforms. With groundwater unregulated in many areas and industrial usage underreported, the piece calls for comprehensive policy changes, including lifecycle water use disclosure, tighter regulations, and public investment in water recycling and Indigenous-led watershed restoration.
Framing Arizona’s dilemma as a moral and environmental reckoning, Hays emphasizes that unchecked development cannot continue in a state already on the brink—and that true leadership will require industry and lawmakers alike to sacrifice growth illusions in favor of justice and long-term water equity.
Read The Full article at AZCentral
Colorado Considers 20-Year Tax Breaks for Data Centers Amid Growing Environmental, Equity Concerns
A bipartisan bill in Colorado, Senate Bill 280, proposes sweeping 20-year sales and use tax exemptions for data center developers who invest at least $250 million and meet water and energy efficiency benchmarks. Backers argue it will attract economic development and modernization, especially as Colorado currently captures only 2% of national data center investment. Critics, however, question whether such incentives are necessary for an already booming industry — and warn that high energy and water consumption could undermine the state’s clean energy goals and disproportionately burden local utilities and communities.
While the bill includes provisions for environmental consultation and mandates a performance review in 2031, opponents say the efficiency requirements are too weak and that the proposal lacks incentives to direct growth to economically transitioning regions like Pueblo. The measure narrowly passed its first committee vote and now heads to Senate Appropriations, continuing a broader national debate on how to balance digital infrastructure growth with climate, equity, and local governance.
Read The Full Article at Denver Post
Prince William Forum Unites Officials and Industry for Candid Talk on Data Centers and Energy Demand
A recent forum in Manassas Park hosted by the Prince William Committee of 100 brought together county officials, Dominion Energy, and data center representatives for an open discussion on the region’s booming data center market and its strain on the power grid. The April 17 panel featured speakers including Sen. Danica Roem, Gainesville Supervisor Bob Weir, Dominion SVP Bill Murray, and the Data Center Coalition’s Kate Smiley.
Topics ranged from grid stress and transmission transparency to the pace of development and land use. Roem decried the governor’s “soft veto” of a bill requiring environmental disclosure from data center developers, while Weir warned of opaque power demand figures and NDA-shrouded planning processes. Smiley defended the sector’s economic value and promised improved collaboration, referencing a JLARC report that found data centers largely cover their electricity costs—though rising demand may affect residential rates. The event underscored growing public interest and tension around Northern Virginia’s digital infrastructure expansion.
Governor Hobbs Nixes Fast-Track for Nuclear-Powered Data Centers in Arizona
April 22, 2025
Arizona Gov. Katie Hobbs has vetoed House Bill 2774, which aimed to fast-track the development of small modular nuclear reactors (SMRs) at data centers and other industrial sites by bypassing key environmental and zoning regulations—especially in rural areas. The bill, backed by House Majority Leader Michael Carbone, would have exempted these facilities from local zoning restrictions and environmental compatibility certifications.
Hobbs expressed support for innovation in energy, but called the bill premature, noting that no SMRs are commercially operational in the U.S. Carbone criticized the veto as “shortsighted,” especially as tech and AI sectors anticipate soaring power demands and explore nuclear energy as a solution. He hinted at reviving the proposal in a future legislative session.
The debate underscores broader tensions around Arizona’s energy future, rural development, and the growing role of AI-fueled infrastructure. While some see SMRs as a promising path for economic growth and energy reliability, critics—including environmental groups—warn of unproven benefits, unresolved nuclear waste issues, and the dangers of deregulation.
ReadThe Full Article at Arizona Mirror
Stillwater Residents Blame Google Data Center Construction for Killing Neighborhood Pond
Residents of the Parkview Estates neighborhood in Stillwater, Oklahoma, are voicing concerns that the construction of a nearby Google data center has severely damaged a beloved community pond, killing hundreds of fish. The homeowners association president, Doris Al-Harake, said the issue began over a week ago, coinciding with visible site work across the street.
City officials attribute the die-off to red clay runoff from recent rains rather than direct construction impact, noting measures such as new silt fencing and an earthen berm have been implemented to contain future runoff. Officials maintain the issue is temporary, but neighbors remain upset over the loss and the disruption to their community’s quality of life.
Michigan Approves Data Center Tax Breaks Amid AI Boom
Michigan has passed two new laws granting sales and use tax exemptions for data centers, aiming to attract AI-driven infrastructure and jobs. Governor Gretchen Whitmer signed the bills despite environmental concerns from some lawmakers, who warn of excessive water and energy use with minimal long-term employment gains.
The state currently lacks large-scale data centers, positioning it to shape policy before major development begins. Advocates highlight Michigan’s cooler climate and access to the Great Lakes as natural advantages, while critics caution that much of the expansion occurs under nondisclosure agreements, limiting public transparency. With national data center electricity use projected to nearly triple by 2028, Michigan joins the Midwest race to host the digital backbone of AI—raising familiar questions about sustainability and local benefit.
Read The Full Article at Axios
Oregon House Passes Bill Requiring Data Centers to Pay Fair Share of Energy Infrastructure Costs
The Oregon House has passed HB 3546, a bill designed to protect residential and small business utility customers from footing the bill for the energy infrastructure required to support data centers. Passed with a 41-16 vote, the legislation gives the Oregon Public Utility Commission new authority to ensure that data centers and crypto operations bear their fair share of costs for new transmission lines and power generation.
Key provisions include:
- Cost allocation based on who benefits most from new infrastructure.
- Mandatory 10-year electricity purchase agreements from utilities for all new data centers—aimed at preventing short-term users from leaving behind costly infrastructure burdens.
- Applies specifically to data centers using investor-owned utilities like Portland General Electric and PacifiCorp.
Backed by Governor Tina Kotek, the bill now heads to the Senate. Oregon—already home to AWS, Meta, Google, and Apple data centers—saw PGE supply over 1 million MWh to data centers in 2023, more than doubling 2021 levels. Data centers now account for 11% of Oregon’s total energy consumption.
Rep. Pam Marsh, a sponsor, emphasized that data centers’ impact on the grid is unlike any other sector, justifying the need for updated regulation.
