This week’s Zoning In shows just how quickly the rules around data center development are changing. From moratoriums and rejected projects to lawsuits, tougher NDA policies, and new requirements around community benefits, public opposition is increasingly driving public policy.
Massachusetts may offer a glimpse of what comes next, with new rules requiring community benefit agreements and effectively giving host communities a greater say over whether projects move forward.
Unless the industry takes the bull by the horns on community engagement, transparency, and meaningful local benefits, we are likely to see more government officials step in and set the rules of engagement themselves. The industry still has an opportunity to lead — but that window is getting smaller.
Rural Residents Plead With South Carolina Leaders to Hit Pause on Data Centers
Data center resistance continues spreading across South Carolina, with Orangeburg and Fairfield counties considering year-long moratoriums and several other jurisdictions already imposing or exploring restrictions. Water, power, noise and environmental impacts remain central concerns, but lack of transparency is also becoming a major driver of opposition, particularly around NDAs and projects advancing before residents or even elected officials feel adequately informed. Packed public meetings are reinforcing calls for communities to have a greater voice before projects move forward.
Pinal County Rejects Data Center Despite Developer’s Concessions
A proposed 3,300-acre Arizona data center was rejected 4-1 despite the developer dramatically scaling the project from 59 buildings to 11, reducing the number of gas-fired power plants, increasing distance from neighbors and pledging lower water use. One supervisor pointed directly to overwhelming public opposition, saying that when 90% of residents oppose a project, he will “vote the will of the people.” The decision underscores a growing challenge for developers: once community opposition hardens, even major late-stage concessions may not be enough to rescue a project.
Charlotte Considers Extending Data Center Moratorium as Residents Weigh In
Charlotte may extend its 150-day data center moratorium to as long as nine months while officials develop new regulations addressing power, water, noise, air quality and proximity to neighborhoods. Notably, the city is making community input a central part of the process, holding multiple public meetings and conducting an online survey before determining its regulatory approach. The message from city leaders is increasingly familiar: data center growth is moving faster than existing zoning and regulatory frameworks can accommodate.
Data Center or R&D Campus? Northwest Austin Neighbors Seek Answers About Project Cosmos
A messaging disconnect is creating distrust around Project Cosmos in Austin, where residents say they understood the former 3M property was becoming an R&D campus while an SEC filing identifies Cosmos as a data center project. Residents say they are not necessarily opposed to redevelopment but want clarity about what is actually being built and its potential power, water and noise impacts. Neighbors are now organizing their own town hall — another example of how an information vacuum can quickly become a community-relations problem.
Data Center Fight Pits Film Studio Against DeKalb County
The fight over Shadowbox Studios’ proposed South DeKalb data center has escalated into zoning appeals, litigation and street protests. Shadowbox argues it had prior county assurances allowing the project and is touting significant tax revenue, jobs and low water use, while opponents accuse the company of trying to circumvent DeKalb’s data center moratorium. Perhaps most telling from an engagement standpoint, critics say the company waited too long to engage residents — illustrating how difficult it can be to build community support after a dispute has already become adversarial and moved into the courts.
Effingham County Residents Sue Over Zoning Change Tied to $20 Billion OpenAI Data Center
Three Effingham County residents are suing to invalidate a zoning change that allowed data centers on industrial property, arguing the county failed to hold required public hearings before approving the ordinance. The challenge is tied to OpenAI’s planned $20 billion Project Camellia and does not directly target the project’s power agreement. The case is another reminder that process matters as much as project merits — and that perceived shortcuts around public participation can quickly become legal and reputational liabilities.
Most Data Center Bans Are in Metro Areas, Despite More Facilities Heading for Rural Areas
Nearly 700 local data center restrictions have been proposed nationwide, with 84% of tracked policies already enacted and opposition continuing to spread into rural communities where two-thirds of new facilities are planned. Researchers have identified 580 local opposition groups with more than 640,000 Facebook members, while the issue is increasingly moving into state and national politics ahead of the midterms. The broader takeaway: organized opposition is scaling quickly, and rural communities are increasingly adopting the same playbook already seen in major metro markets.
Data Centers Now Facing Backlash Over Contaminated Wastewater
Water concerns around data centers are expanding beyond consumption to what facilities may discharge back into local systems. The article highlights a bacterial contamination dispute involving Meta’s Cheyenne campus, enforcement actions and runoff issues elsewhere, and growing scrutiny of PFAS, heavy metals and other contaminants in wastewater. With Waterkeeper groups across the country now focused on data center-related water issues, wastewater quality is emerging as another environmental concern developers may increasingly need to address proactively with communities.
Map Reveals States Where Data Center Projects Were Hidden Behind NDAs
Non-disclosure agreements are becoming a flash point in the national debate over data center transparency. Investigations cited in the piece found NDAs tied to projects in Pennsylvania, Virginia, Arizona, Louisiana, Tennessee, Wisconsin and Indiana, with critics arguing that secrecy prevents residents from understanding potential impacts until decisions are already well underway. With states such as Pennsylvania now restricting NDA use and federal scrutiny increasing, confidentiality practices that were once routine in site-selection discussions are becoming a significant political and community-relations risk.
Illinois Losing Ground as Data Center Hub Amid Local Pushback
More than $200 billion in potential data center development is reportedly shifting from Illinois to neighboring states as scrutiny, political opposition and regulatory uncertainty increase. But the article also points directly to the industry’s community engagement problem, citing NDAs and a failure to educate residents before applications are filed. The takeaway is significant: community trust and regulatory certainty are increasingly becoming competitive economic-development issues, with capital and projects potentially moving elsewhere when either is lacking.
Data Centers Sparked a Fight. Now Residents Shape the Rules.
After strong opposition helped derail a proposed data center and prompted a 12-month moratorium, Citrus County, Florida, is now asking residents to help shape its permanent regulations. Proposed rules include 1,000-foot setbacks, noise studies, water and power requirements, expanded public notification and a reclamation plan backed by funding equal to 115% of estimated decommissioning costs. It’s another example of community opposition not simply stopping individual projects, but directly shaping the rules future developers will have to follow.
Board of Supervisors Updates County NDA Policy Following Data Center Controversy
Pima County, Arizona, is tightening its NDA policy following criticism over secrecy surrounding the controversial Project Blue data center. The county reduced the maximum NDA term from five years to two and will require board approval for extensions beyond six months. Officials also expanded “Enhanced Due Diligence” requirements for projects with significant water or power demands — further evidence that data center controversies are producing lasting changes to transparency and project-review requirements.
Ypsilanti Data Center Town Hall Gets Heated Over University of Michigan, Los Alamos Project
A town hall over a proposed $1.25 billion University of Michigan and Los Alamos National Laboratory high-performance computing center became heated enough that sheriff’s deputies and private security were on hand. While project officials say the facility will support research in areas including energy, medicine, cybersecurity and national security — with no nuclear materials or manufacturing onsite — some residents fear its defense connections could make their community a target. The controversy shows how projects can face concerns far beyond the industry’s now-familiar debates over power, water and noise.
Federal Government Moves to Limit Public Input on Data Center Projects
The EPA is proposing changes that could eliminate a federal requirement for public notice and comment before certain air-pollution permits are approved and could allow construction to begin before permits are finalized. Supporters say the changes would speed permitting and economic development, while opponents argue they could remove one of the few formal opportunities residents have to learn about and weigh in on major projects. At a time when distrust around data center transparency is already high, reducing public participation could further intensify the very community opposition developers are trying to overcome.
Tensions Flare at Ferguson City Hall as Reconsidered Data Center Plan Sparks Outrage
A revived $1.8 billion data center proposal in Ferguson, Missouri, triggered a contentious City Council meeting after an earlier tax-abatement agreement was rejected. The revised proposal includes $7.5 million over 10 years for a neighborhood improvement program, but residents continue raising concerns about jobs, environmental impacts and proximity to schools, while opponents have launched a recall effort targeting supportive council members. Notably, the mayor is now pushing for a stronger community benefit agreement, illustrating how CBAs are increasingly becoming central to the political viability of controversial projects.
‘No authority’: Helpless on data centers, Alabama counties caution against industry-specific zoning
Data center opposition is exposing a major gap in Alabama’s local zoning authority. While residents are increasingly demanding moratoriums and tougher restrictions, most county commissions have virtually no power to regulate development in unincorporated areas. The controversy is now fueling a broader debate over whether counties need greater authority to manage growth, with Lowndes and Morgan counties looking to the state legislature for help. Meanwhile, a growing number of Alabama cities — which do have zoning authority — are imposing or considering data center moratoriums.
Residents question noise impacts of OpenAI data center
Noise and proximity to homes and schools are emerging as major concerns around OpenAI’s planned $20 billion Project Camellia in Effingham County, Georgia. OpenAI says the project will have no diesel backup generators, at least a 300-foot vegetative buffer, a pre-operation noise study, perimeter noise monitoring and regular public data updates. But residents say uncertainty over what the facility will ultimately sound like — and its potential impact on quality of life and property values — remains a significant concern.
Healey’s New Data Center Rules Make Massachusetts a Tough Sell for Developers
Massachusetts’ new data center rules could significantly raise the bar for development, requiring projects of 25 MW or more to address grid costs and secure a community benefit agreement before state permits can be issued. The order also bars NDAs between developers and state agencies and effectively gives host communities veto power. Industry observers warn the requirements could discourage investment, while Gov. Maura Healey argues Massachusetts is acting before the problems seen elsewhere take hold — underscoring how community approval is increasingly becoming a prerequisite for development rather than an afterthought.
