This week’s headlines spotlight a growing national reckoning over the power, land, and local control issues tied to the explosive growth of AI-fueled data centers. In Washington, federal regulators rejected Amazon and Talen Energy’s request to revisit a ruling that blocks a co-located data center from ramping up power use at a Pennsylvania nuclear plant—further signaling increased scrutiny of behind-the-meter energy arrangements.
At the state level, Arizona’s utility regulators launched a formal review of grid strain caused by data centers, while Illinois lawmakers proposed mandatory water and energy use disclosures for operators. Meanwhile, Georgia’s former PSC candidate launched a watchdog group to ensure rising AI-related infrastructure costs don’t fall on everyday consumers.
Local communities also continue to resist unchecked data center development. Porter County, IN, and Milwaukee, WI residents protested new proposals over environmental, health, and infrastructure concerns. Despite resident opposition, Kuna, ID’s city council, narrowly approved a billion-dollar campus rezone, and Frederick County, MD, is pushing back against Virginia-style proliferation. In West Virginia, lawmakers advanced controversial data center incentives that limit local zoning authority, drawing sharp criticism in both reporting and opinion pieces.
Despite these tensions, massive developments like Oldham County, KY’s proposed $6B data center campus are moving forward, promising significant economic returns but underscoring the balancing act between growth, equity, and sustainability.
U.S. Regulators Deny Rehearing on Co-located Amazon Data Center Energy Pact
U.S. energy regulators have denied a request to reconsider their decision blocking Amazon’s data center from ramping up power use directly sourced from Talen Energy’s Susquehanna nuclear facility in Pennsylvania. The Federal Energy Regulatory Commission (FERC) previously rejected Talen’s request to increase power supply beyond 300 megawatts, citing concerns over public power reliability and costs. The ruling highlights the regulatory scrutiny surrounding co-located data centers, which are designed to expedite energy access for AI-driven technology but have raised questions about their broader impact.
Read The Full Article at Reuters
Arizona Regulators Scrutinize Data Centers’ Strain on Power Grid
The Arizona Corporation Commission (ACC) has initiated a formal review to assess the impact of the state’s rapidly expanding data center industry on the electric grid. This move comes amid concerns over the significant energy demands of data centers, which could affect grid reliability and lead to higher electricity costs for consumers. The ACC aims to evaluate whether existing infrastructure can support this growth and to consider potential regulatory measures to manage the industry’s energy consumption.
Read The Full Article at Havasu News
Porter County Residents Protest Proposed 800-Acre Data Center in Union Township Residents of Porter County, Indiana, oppose a proposal to develop a nearly 800-acre data center in Union Township. Concerns include potential environmental impacts, increased traffic, and changes to the rural character of the area. The proposal has sparked community meetings and petitions, with many locals urging officials to reconsider the development.
Read The Full Article at Chicago Tribune
Kuna Approves Controversial Rezone for $1B Data Center Campus
The Kuna City Council narrowly approved a rezoning request from Diode Ventures to convert 620 acres of farmland into an industrial site for the proposed Gemstone Technology Park, a billion-dollar data center campus. The 3-2 vote, decided by Mayor Joe Stear, enables Diode to proceed with the design review despite vocal opposition from residents concerned about traffic, farmland loss, and community identity. Supporters, including city officials, highlighted the project’s $40 million in direct contributions to local services and its alignment with Kuna’s economic development plans. The facility will operate off municipal water and sewer and partner with Idaho Power to enhance grid reliability. While Diode has not announced a construction timeline, the proposal mirrors the nearby Meta data center project in scale and ambition.
Read The Full Article at Idaho Press
New Watchdog Group Launches Ahead of Georgia Power Hearings Amid AI-Driven Demand Surge
Former Georgia Public Service Commission (PSC) candidate Patty Durand has launched Georgia Utility Watch, a consumer watchdog aimed at holding regulators and Georgia Power accountable as the utility pursues significant infrastructure investments driven by anticipated energy demands from AI and data centers. The group calls for restoring consumer representation in rate cases and ensuring energy costs tied to large data center projects aren’t shifted onto residential and small business ratepayers.
A longtime energy advocate, Durand founded the watchdog as the PSC prepares to vote on Georgia Power’s 2025 Integrated Resource Plan and a three-year rate case. Georgia Utility Watch will monitor stipulated agreements and campaign contributions, citing concerns about conflicts of interest and unchecked monopoly power. The hearings come amid plans for new gas-fired generation at Plant Bowen—proposed to meet AI demand—despite the utility’s stated intent to reduce fossil fuel reliance.
Read The Full Article at Georgia Recorder
Natural Gas for Data Centers? Milwaukee Residents Protest $1.2B We Energies Plant
Community opposition is mounting against We Energies’ proposed $1.2 billion natural gas plant in Oak Creek, Wisconsin. North Side advocacy groups, including Metcalfe Park Community Bridges and North Side Rising, argue the plant poses environmental and public health risks and questions its necessity—especially as it’s partly driven by new industrial demand like Microsoft’s forthcoming data center in Mount Pleasant.
Critics say the plant’s emissions could disproportionately affect nearby communities and that such investment would be better directed toward renewables. Wisconsin currently lags behind neighboring states in renewable energy use, with only 9% of its power from clean sources. Despite We Energies’ pledge to increase clean energy by 2030, residents are calling for immediate action: “Our children deserve communities where they can breathe,” said local organizer Melody McCurtis.
Read The Full Article at Milwaukee ENS
Frederick County Pushes Back on Data Center Proliferation, Eyes Balanced Growth
While Maryland continues to promote data centers as a source of new revenue, Frederick County is taking a more measured approach. County Council President Brad Young emphasized that only limited development is expected—perhaps five data centers total—compared to Northern Virginia’s 200+. One facility is underway at the former Eastalco site, but new legislation under review would introduce stricter siting and environmental standards. Despite acknowledging their potential for job creation and tax relief, Young said the Council is determined to avoid the unchecked sprawl seen in neighboring regions. A vote on the proposed regulations is scheduled for May 6.
Illinois Lawmakers Propose Reporting Mandate to Mitigate Data Center Strain on Power Grid
As Illinois experiences rapid growth in data center development, lawmakers are sounding the alarm on the industry’s escalating demand for water and electricity—and its potential to derail the state’s clean energy goals. A new bill introduced by State Sen. Steve Stadelman (SB 2181) would require data centers to report annual energy and water consumption to the Illinois Power Agency or face fines. The legislation aims to ensure residential ratepayers aren’t subsidizing tech infrastructure unknowingly and to help safeguard the state’s 100% clean energy mandate by 2050.
With 2.6 GW of future data center projects already planned in the Chicago metro, concerns about delaying fossil fuel plant closures—as seen in Virginia—are fueling the urgency. Some industry insiders caution against overregulation, citing variability in data center types and progress in sustainability tech. Consumer advocates, meanwhile, fear unchecked growth could drive up utility costs and strain supply.
Opinion: AI Data Center Boom Faces Political and Regulatory Crosswinds
In a recent Utility Dive opinion piece, Joe Brettell and Jeff Berkowitz explore how the AI-fueled data center boom is running into political and regulatory headwinds. Once embraced by state and local governments for their perceived economic benefits, data centers are now drawing scrutiny over their massive demands for power, water, and land. Communities, regulators, and utilities are pushing back, citing environmental concerns and questioning the return on tax incentives — especially in rural areas where job creation is minimal.
The authors argue that the energy-tech relationship is growing increasingly strained, as utilities juggle grid reliability while tech companies push for rapid AI infrastructure deployment. To avoid fragmentation and backlash, Brettell and Berkowitz call for national coordination on permitting, siting, and sustainability — warning that decisions made today will define the long-term viability and leadership of the U.S. in the AI era.
West Virginia Senate Advances Data Center Bill Amid Local Control Concerns
The West Virginia Senate has advanced a bill aimed at attracting data centers to the state by offering tax incentives. However, the bill has faced criticism for limiting local governments’ control over zoning and taxation related to these facilities. While some amendments have been made to address these concerns, many local officials feel that the legislation still undermines their authority.
Read The Full Article at WVGazette
Opinion: West Virginia Bill Trades Local Control for Data Center Incentives
In a sharply critical opinion piece for West Virginia Watch, Quenton King argues that House Bill 2014—currently advancing in the West Virginia Senate—represents a troubling shift in the state’s approach to economic development, favoring data center developers and fossil fuel interests at the expense of local communities. The bill, backed by Governor Patrick Morrisey, would allow data centers to construct their own microgrids and potentially exempt them from local zoning and permitting processes.
King, a vocal skeptic of the state’s readiness for data center development, frames the legislation as a “sweetheart deal” that sidelines local governments, exposes communities to environmental risks, and diverts local tax revenue to state-level funds, including a pot aimed at reducing income taxes. He warns that microgrids could be sited near homes, schools, and tourist destinations without local input—raising concerns over air quality, water usage, and noise pollution.
While this is an opinion piece, its argument raises important issues that data center developers and policymakers should be aware of: growing local resistance, scrutiny over fossil fuel-powered infrastructure, and the potential backlash against tax policies perceived to benefit large tech companies at the cost of community services.
Read The Opinion Piece at West Virginia Watch
Oldham County’s $6B Data Center Project Forecasts $4B in Economic Activity and $51.4M in Annual Tax Revenue
A proposed $6 billion data center, named “Project Lincoln: OC Data Center,” is set to become one of Kentucky’s largest private investments. Located on a 267-acre site near La Grange, the facility will encompass 1.25 million square feet across multiple buildings. An economic analysis estimates that the construction phase alone could generate over $4 billion in regional economic activity.
Once operational, the data center is projected to contribute an average of $51.4 million annually in local tax revenue, with Oldham County Schools potentially receiving up to $38 million annually. The project is expected to create 176 direct jobs with an average salary of $83,000 and over 400 indirect and induced jobs. Developers have been coordinating with local utility companies to ensure adequate infrastructure support, and the project’s water and power demands are not anticipated to pose issues. With approvals pending, the data center could be completed within the next five years.
Read The Full Article at Louisville Business Journal
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