This week’s Zoning In highlights a theme we’ve seen accelerating in recent months: the deepening friction between the relentless expansion of AI-driven data center infrastructure and the ability (or willingness) of communities, regulators, and utilities to keep pace. Across states like Kentucky, Ohio, Georgia, West Virginia, and Colorado, we see a familiar pattern—local residents and officials increasingly questioning the long-term impacts of energy-hungry data centers on land use, water, noise, quality of life, and utility rates, even as state and federal policies continue to incentivize rapid growth.
At Milldam, these headlines reinforce a simple truth: community relations is no longer a “nice to have” in the data center industry—it’s a critical risk management tool. Without early engagement, transparency, and trust-building, developers risk finding themselves in exactly the types of conflicts that now make weekly headlines. Our Data Center Community Relations Practice continues to position clients for success not only at the permitting stage, but in building durable relationships with the communities where they operate.
Data Center Developments & Community Responses
Oldham County Data Center Project Relocates and Downsizes Amid Fierce Local Opposition
Western Hospitality Partners has significantly scaled back and relocated its proposed hyperscale data center in Oldham County, KY, following intense local resistance. Originally planned as an eight-building, 2 million square-foot facility on 267 acres of farmland, the project will now move to a 30-acre former drive-in theater site zoned commercial. While local leaders welcomed the compromise, community activists remain wary and continue pushing for formal zoning regulations to control future developments.
Read more at Kentucky Public Radio
Richfield Township Residents Push Back on Proposed Zoning Change for Potential Data Center
A proposed zoning change in Richfield Township, Ohio, has triggered strong opposition from local residents worried it could open farmland to future data center development. Generational farm families fear such construction would erode the community’s rural character and heritage. Discussions will continue at a special township meeting scheduled for June 5.
Read more at Towpath Radio
Atlanta Tightens Data Center Restrictions With New Special-Use Permit Requirement
The Atlanta City Council has approved new zoning restrictions requiring all new data centers to obtain a special-use permit and banning them from several neighborhoods. The ordinance builds on previous restrictions and responds to growing concerns about data centers’ energy, water, and land use impacts in dense urban areas.
Read more at The Atlanta Journal-Constitution
Albemarle County Invites Community Input as It Shapes New Data Center Regulations
Albemarle County, VA is proactively crafting permanent data center regulations and inviting the public to weigh in. Though the county currently has no data centers, staff aim to be prepared as demand spreads beyond Northern Virginia. Temporary rules adopted in May limit facility size to 40,000 sq. ft. without a special use permit. Permanent rules could address size, water use, noise, and visual impacts. Officials are researching models from other communities and balancing economic opportunities with infrastructure and environmental considerations. Two community info sessions will be held in June to gather local feedback.
Read more at Charlottesville Tomorrow
Blasting for Amazon Data Center in Newton County Allegedly Damages Nearby Homes
Construction blasting for an Amazon data center in Newton County, GA, has allegedly caused property damage to nearby homes, including a ceiling collapse. Residents report receiving little support or accountability from city officials or the developer. The controversy highlights the need for stricter oversight of large-scale site preparation activities.
Read more at WSBTV
Data Centers Face Resistance in Coweta Despite State Incentives
Despite generous state tax incentives, Coweta County residents are pushing back against new data centers. Two projects requiring zoning changes—one in Arnco-Sargent and one in unincorporated Palmetto—have drawn vocal community opposition. The situation reflects broader tensions between state-level economic development strategies and local quality-of-life concerns.
Read more at The Newnan Times-Herald
Social Circle Approves Second Major Data Center, With Conditions on Buffers and Community Impact
Social Circle, GA, has approved a second major data center—a $5 billion, 2.5 million square-foot facility—while modifying some proposed development conditions related to site buffers and community visibility. Although no public opposition was voiced, concerns remain regarding local workforce access and the long-term community impact of this large-scale development.
Read more at The Walton Tribune
Opinion: West Virginia’s Data Center Push Risks Environmental Harm, With Little Economic Gain
Opinion – Leann Ray critiques West Virginia’s recent efforts to attract data centers via HB 2014, arguing that residents will bear the environmental and economic costs while receiving few benefits. The opinion piece warns that without Virginia-style zoning safeguards, West Virginia could become a haven for the least scrupulous developers.
Read more at West Virginia Watch
