The community relations battles and policy debates around U.S. data centers continue to accelerate — and the headlines are getting louder.
This week’s Zoning In roundup brings one of our most diverse sets of stories yet: from a WIRED feature on how federal AI legislation may undermine local control over where data centers get built, to Dale Earnhardt’s widow facing nearly 200 protesting neighbors in North Carolina over her plan to redevelop Mooresville land into a data center campus.
Zoning & Local Battles
A Political Battle Is Brewing Over Data Centers
An AI-related provision in President Trump’s “Big Beautiful Bill” could unintentionally restrict local data center regulation, raising bipartisan concerns about zoning control and community rights as data centers proliferate across the U.S.
Read more at WIRED
Supervisors to vote on secretive data centers plan in southeast Tucson
Pima County officials are set to vote on a secretive 8-10 building data center campus known as Project Blue amid concerns about transparency, water and power use, and a controversial nondisclosure agreement shielding key details from the public.
Read more at Arizona Daily Star
Huge data center complex near Tucson endorsed by Pima County administrator
Pima County’s administrator is recommending approval of the massive Project Blue data center campus, now identified as being developed by Beale Infrastructure and Humphrey’s Peak Properties, with plans for $3.6 billion in investments, major water management promises, and a long-term energy deal with Tucson Electric Power.
Read more at Arizona Daily Star
Dale Earnhardt’s widow faces neighbors over data center plans
Teresa Earnhardt’s proposed data center campus on Mooresville land near Lake Norman is facing local resistance over rezoning concerns and environmental impacts, though the project narrowly passed the Planning Board after initial rejection.
Read more at Charlotte Observer
Letter to the editor: Doesn’t want data center campus
A retired AWS employee from Frederick County, VA, strongly opposes a proposed 600-acre data center campus, citing negative community impacts and minimal job creation based on personal experience with global data center projects.
Read more at Winchester Star
State Legislation & Regulation
Minnesota lawmakers extend tax breaks for Big Tech data centers
Minnesota’s data center tax breaks were extended through 2077, even as lawmakers removed the exemption on electricity to recapture revenue and imposed new clean energy and labor requirements, reflecting industry pressure balanced against fiscal concerns.
Read more at Minnesota Reformer
Immediate Iowa tax law changes for data centers
A legal update details immediate changes to Iowa’s tax exemption for data centers, confirming new time limits and mandatory reporting going into effect January 1, 2026.
Read more at Nyemaster
Power & Water
How your electric bill may be paying for big data centers’ energy use
A Harvard study finds that many utilities are shifting the cost of grid expansion and new power plants for data centers onto general ratepayers through opaque contracts, raising concerns about transparency and fairness.
Read more at The Conversation
1,700 people urge regulators to prevent powering Georgia data centers with coal
Nearly 1,700 Georgians submitted comments opposing Georgia Power’s plan to extend coal plant operations to meet rising data center energy demand, warning of health, climate, and cost impacts for regular ratepayers.
Read more at Ledger-Enquirer
Tech Industry Fights to Save Clean-Energy Tax Credits
Big Tech companies, through the Data Center Coalition, are lobbying to preserve federal clean energy tax credits that are critical to powering data centers with renewables, as Congress debates phasing them out.
Read more at WSJ
Community Commentary & PR
Opinion: Data centers are a backbone of Arizona’s economy
Arizona Chamber CEO argues that data centers provide essential digital infrastructure and economic benefits, positioning Arizona as a key national player despite concerns about resource use and community impacts.
Read more at Chamber Business News
My View: How data centers fuel Arizona’s digital economy boom
An Arizona tech advocate emphasizes the broad economic benefits of data centers for the state, asserting that their growth supports diverse industries and future innovation.
Read more at Phoenix Business Journal / AZ Inno
Powering more than data: How data centers can strengthen greater Reno area
An EdgeCore executive urges data center developers to embrace environmental sustainability and community investment as Reno’s data center market surges, positioning the facilities as good neighbors.
Read more at Reno Gazette Journal
Industry Trends & Support
Amazon AI project will tap nuclear power in Pennsylvania
Amazon plans to power a new AI-driven cloud region with electricity from a Pennsylvania nuclear plant, highlighting Big Tech’s scramble for carbon-free energy amid soaring AI-related data demand.
Read more at Fortune
Hammond council approves multibillion-dollar data center project
Hammond, Indiana approved a $1.2B data center project led by CoreWeave and Decennial, touted as the city’s largest-ever development, though power supply remains a key challenge.
Read more at Inside Indiana Business
Data center tax breaks could leave Indiana $2.2 billion short
Indiana’s aggressive data center tax incentives are projected to cost the state at least $2.2B, raising concerns about lost public revenue and minimal job creation amid a surge of new project proposals.
Read more at WFYI
Tempe ordinance aims to manage data center growth as demand surges (Business Journal)
A complementary Business Journal report on Tempe’s zoning ordinance, reflecting the broader push across metro Phoenix to establish clearer rules for data center siting.
Read more at Phoenix Business Journal
