This week’s Zoning In highlights some significant developments in the growing pushback against data center expansion.
A new Heatmap Pro analysis estimates that more than $260 billion in planned data center investments have been canceled in 2026 amid local opposition, while another $1 trillion faces meaningful resistance. Meanwhile, San Francisco and Raleigh approved new moratoriums, Hillsboro, Oregon, is considering zoning changes that would dramatically restrict future development, and Mahomet, Illinois, abandoned discussions with a developer following overwhelming community opposition.
Also worth highlighting are The Oregonian’s investigation into data center tax incentives and transparency, The New York Times’ visual examination of the industry’s massive expansion, and the increasingly organized opposition campaigns emerging across the country.
Loudoun County Leaders Acknowledge Mistakes in Data Center Development
Loudoun County, Virginia, officials are acknowledging past land-use decisions involving data center development as residents continue raising concerns about facilities being built near residential neighborhoods. Local leaders are reconsidering development rules amid growing scrutiny of how data centers have been approved and their impacts on surrounding communities.
Texas AG Investigating Proposed Data Center in Taylor
Texas Attorney General Ken Paxton has launched an investigation into a proposed Blueprint Data Centers project in Taylor following allegations that the property was originally designated for use as a public park. Residents have been fighting the development in court, arguing that a 1999 land deed restricts the property’s use. Local economic development officials dispute that interpretation, while opponents hope the state investigation will halt construction.
Hillsboro Proposes Strict Limits on New Data Centers, Reducing Potential Sites to 30 Acres
Hillsboro, Oregon, is considering sweeping zoning restrictions that would reduce the land available for new standalone data centers from more than 6,600 acres to approximately 30 acres. The proposal would prohibit data centers as a primary use in most industrial zones and establish a 1,000-foot buffer from schools. The changes follow the city’s existing moratorium and mounting pressure from residents seeking tighter controls on future development.
City Council Meeting Erupts Into Chaos After Planned Data Center Vote Postponed
A Memphis City Council meeting descended into shouting and physical confrontations after officials postponed a vote on a proposed 12-month data center moratorium until October 20. Approximately 100 protesters attended the meeting, many opposing Elon Musk’s expanding data center operations in the area. The proposed moratorium would allow the city to study potential impacts on public health, electricity, water and infrastructure, while opponents warn that restrictions could drive investment to neighboring communities.
Detroit City Council Member Gabriela Santiago-Romero is pursuing an 18-month moratorium on new AI data center permits, potentially extending through March 2028. The proposal follows an earlier council request for a two-year pause that the mayor has not formally implemented. Meanwhile, Detroit’s City Planning Commission is developing permanent data center zoning regulations, with officials targeting approval by the end of December.
Rally Held in Massena to Protest Data Center Development
Residents and activists rallied in Massena, New York, against proposed data center development, including the expansion of an existing cryptocurrency mining facility. Opponents raised concerns about electricity and water consumption, environmental impacts and limited permanent employment. Organizers previously sought a three-year moratorium, but the Town Board rejected a shorter six-month pause in a 3-2 vote. Opposition groups are continuing to organize and push for additional environmental and economic reviews.
After Years of Lawsuits, Allegations and Rancor, Oregonians See an Opening to Rein in Data Centers
A sweeping investigation by The Oregonian examines how data center operators have leveraged nondisclosure agreements, tax incentives and outdated zoning regulations to expand across Oregon. With annual data center tax incentives exceeding $450 million, growing concerns about electricity and water consumption, and allegations of questionable dealings, pressure for stricter oversight is mounting. Both major gubernatorial candidates have expressed support for pausing new developments, while communities including Hillsboro and Salem are pursuing restrictions and greater transparency.
State Regulators Allege Environmental Violations at Google Data Center Site in Chesterfield
Virginia environmental regulators issued a Notice of Violation involving Google’s Project Peanut data center in Chesterfield County, citing seven incidents of unauthorized sediment runoff between December 2025 and August 2026. Regulators say the runoff affected thousands of feet of streams and more than an acre of wetlands. Google attributed the incidents to heavy rainfall overwhelming stormwater controls and says it has taken corrective action. Additional enforcement and financial penalties remain possible if violations are not resolved.
Target 7: North Carolina Community Discusses Living Next to a Data Center
WDBJ7 examines the experiences of North Carolina residents living near a data center, offering a community-level perspective on the industry’s expanding footprint. The supplied material contains only the video headline and link, so additional details about residents’ concerns and experiences would need to be confirmed from the report.
Mahomet Ends Talks with Data Center Developer
Officials in Mahomet, Illinois, have ended discussions with Clean Cloud Energy over a proposed hyperscale data center campus following overwhelming community opposition. The decision came just one week after the project became public, with more than 200 residents attending a community meeting to voice concerns. Mayor Jason Tompkins said public feedback played a significant role in the decision, emphasizing that protecting the Mahomet Aquifer and aligning development with community priorities remain paramount.
Data Center, ‘Pop-Up’ Power Plant Fined Just $41,500 After Starting Without Permit
Georgia regulators imposed a combined $41,500 in penalties against ServerFarm and VoltaGrid for beginning construction of a data center and associated temporary power plant in Newton County without required air permits. Environmental advocates argue the penalties are insufficient to deter violations, although the revised permitting requirements reportedly reduced projected emissions by approximately 20%. The case is fueling calls for stronger enforcement and oversight of data center-related power generation.
What the Data Center Boom Looks Like From the Sky
The New York Times uses aerial imagery to illustrate the extraordinary scale and pace of data center development across the United States. According to Cleanview, 180 new data center buildings were completed in 2025, a 170% increase from 2021, with another 88 completed so far in 2026. The report highlights increasingly massive campuses, including the controversial Stratos project in Utah, while examining the growing demands for land, electricity and cooling infrastructure. A September New York Times/Siena poll also found that more than 60% of respondents opposed data center development to support AI.
Reston Residents Raise Concerns About Data Center Construction Noise and Lights
Residents in Reston, Virginia, are raising concerns about construction noise, bright nighttime lighting and the proximity of a CoreSite data center being built less than 100 feet from some homes. Neighbors report construction activity beginning before sunrise and continuing late into the evening. Although Fairfax County now requires a 200-foot setback from residential properties, the project was reportedly approved before those rules took effect. Following complaints, CoreSite agreed to turn off construction lighting overnight.
Town of Lansing to Draft Data Center Ban Following Public Anger
The Lansing, New York, Town Board has agreed to draft legislation banning new data center construction following a contentious public meeting attended by more than 200 residents. The move comes as a proposed data center near Cayuga Lake remains on hold under Governor Kathy Hochul’s one-year moratorium. The proposed local ban would go beyond the state’s temporary permitting pause.
Hundreds Gather to Oppose Data Centers in Newport Township
Hundreds of residents packed a Newport Township, Pennsylvania, meeting to oppose a proposed 15-building data center campus spanning nearly 1,400 acres and including three natural gas power generation facilities. The project, proposed by Fit Energy Group, has sparked criticism over transparency, zoning approvals and the limited information available to residents. Township officials say they have not received formal development plans and have requested that the developer hold a public meeting before the end of October.
How Champaign County Residents Organized an AI Data Center Resistance
A grassroots opposition group in Champaign County, Illinois, has grown into an organized campaign against large-scale data center development, attracting more than 600 followers since launching public meetings in July. The group, Resist AI Data Centers Champaign County, is educating residents, coordinating public comments and working with environmental organizations over concerns about water, electricity, noise and transparency. With a countywide moratorium already in place, organizers are pushing for regulations strict enough to discourage future projects, even as county officials warn that an outright industry ban could face legal challenges.
“We Cannot Be Bought”: Urbana Residents Challenge Data Center Deal
Residents in Urbana, Ohio, strongly opposed a proposed settlement involving Thor Equities and a potential two-million-square-foot data center during a contentious City Council meeting. Speakers questioned the project’s financial incentives, transparency and potential legal implications, with some even raising the possibility of recalling council members. Officials postponed action on the agreement until at least October 20 to gather additional information.
The Shady Deals Behind Data Centers
NPR examines a proposed hyperscale data center in Clarksdale, Mississippi, where land was rezoned before the project was publicly identified as a data center. The report explores the lack of transparency surrounding the development and the difficult choices facing an economically struggling community weighing potential investment against unanswered questions about the project.
MAGA Activists Protest AI Data Centers at Big Tech Headquarters in San Francisco
Conservative activist group Humans First concluded an 8,000-mile, 35-stop nationwide tour protesting data center development with demonstrations outside major technology companies in San Francisco. Led by Amy Kremer, the organization is advocating greater community control over data center development, protections against rising electricity costs and increased transparency. The campaign illustrates how organized opposition to data centers is expanding beyond individual communities into a coordinated national movement.
Exclusive: Data Center Cancellations Top $260 Billion in 2026
A new Heatmap Pro analysis finds that local opposition has contributed to the cancellation of at least $260 billion in planned data center investments in 2026, including approximately $130 billion during the third quarter alone. The research also estimates that roughly $1 trillion in proposed data center investment currently faces meaningful community opposition, with approximately half of the projects encountering backlash this year ultimately canceled. The findings highlight the rapidly growing financial consequences of community resistance.
Pennsylvanians Protest Hyperscale Data Centers at State Capitol
Opposition groups gathered at Pennsylvania’s state Capitol in Harrisburg to protest hyperscale data center development across the Susquehanna Valley. Demonstrators raised concerns about projects being proposed near residential properties and challenged local zoning decisions. The Data Center Coalition defended the industry’s economic contributions, citing nearly 130,000 jobs supported and $1.9 billion in state and local tax revenue generated in Pennsylvania in 2024.
San Francisco Supervisors Pass Temporary Moratorium on Data Centers
San Francisco’s Board of Supervisors unanimously approved an immediate 45-day moratorium on permits for new data centers and expansions of existing facilities, becoming the first Bay Area county to enact such a pause. Officials cited concerns about electricity and water consumption, air quality, noise and outdated zoning regulations. The moratorium will provide time to evaluate environmental impacts, establish clearer definitions and develop stronger protections and community input requirements.
Data Center Developer Files Defamation Suits Against Two People Who Opposed Marshfield Project
A Missouri data center developer has filed defamation lawsuits against two outspoken opponents of a project near Marshfield, alleging that their social media statements contained false information and damaged his reputation and business interests. Developer Trent Overhue claims the statements contributed to financial losses and project delays. The litigation adds a new dimension to increasingly contentious disputes between developers and organized community opposition groups.
Raleigh OKs 6-Month Data Center Pause as Moratoriums Sweep North Carolina
Raleigh’s City Council voted 7-1 to approve a six-month moratorium on new data center applications while officials study potential impacts and develop updated regulations. The pause applies to facilities of at least 10,000 square feet requiring more than 5 MW of electricity. Raleigh joins several North Carolina communities, including Cary and surrounding counties, that have enacted similar restrictions. According to an industry tracker cited in the report, 321 data center moratoriums are currently active nationwide.
Some Martindale-Brightwood Residents Continue to Fight Metrobloks Data Center
Residents in Indianapolis’ Martindale-Brightwood neighborhood continue opposing an approved Metrobloks data center, arguing that the project is advancing without community support. The development could receive approximately $56 million in tax breaks, with a potential tenant eligible for additional equipment-related incentives of up to $339 million. Despite $22.5 million in proposed community commitments, residents and elected officials remain critical, and a lawsuit seeking to block construction is pending.
Kenosha Residents Raise Concerns Over Proposed AI Data Center Development
A public forum at the University of Wisconsin-Parkside brought together residents, elected officials, technology representatives and environmental advocates to discuss the potential impacts of AI data centers in Kenosha. Concerns centered on water consumption, electricity costs, environmental impacts and employment opportunities. State officials emphasized the importance of ensuring that infrastructure and utility costs associated with new developments are not passed along to existing customers.
Colchester, CT Residents Pack Town Hall to Oppose Proposed Data Center
Residents in Colchester, Connecticut, packed a town meeting to oppose a proposed two-building data center development on Old Amston Road. Attendees raised concerns about noise, traffic, water consumption, environmental impacts and the lack of advance public notification. The project still requires a zoning change, but residents questioned why the developer’s website appeared to describe the property as fully permitted. Some are calling for a moratorium on future data center development.
Construction Ban on Data Centers Would Be Better for Ohio Than Status Quo, Study Says
A new cost-benefit analysis by Scioto Analysis concludes that requiring new Ohio data centers to generate 90% of their electricity from renewable sources would deliver the greatest economic benefit, followed by an outright ban on new construction. The study examined electricity demand, environmental costs, employment and economic benefits, finding that continuing current development policies offers comparatively limited net benefits. Researchers caution that the conclusions depend heavily on assumptions about future employment and economic impacts.
