As temperatures continue to rise, so does the scrutiny surrounding the energy, water, and regulatory impacts of data center growth across North America. From Virginia’s AI-fueled power crunch to a proposed megacenter in Delaware that would consume nearly twice the electricity of all the state’s homes, this week’s Zoning In dives into a wave of resistance, policy shifts, and big-picture questions.
With moratoriums mounting, nuclear reactors gaining traction, and transparency being tested, the data center industry faces a clear message: communities, regulators, and utility planners are watching closely.
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Virginia at the Epicenter of AI’s Energy Surge
A new Atlantic Council report outlines how Virginia, already a leading data center hub, is now ground zero for America’s AI-driven energy dilemma. With 30 new data centers coming online between 2024–2025 and more than 23,000 MW of planned capacity, Virginia’s grid is under immense strain. Dominion Energy warns residents could face a 50% rate hike over 15 years. While Virginia boasts strong clean energy targets and renewable growth, these goals predate the AI boom, leaving policymakers scrambling for scalable energy strategies—ranging from stricter siting standards to making hyperscalers bring their own power.
Orangetown Weighs Expansion of DataBank Data Center Amid Local Pushback
Databank’s plan to double its Orangetown, NY campus has hit a wall of resistance. Despite a successful Phase I launch, its proposed 146,000 sq ft expansion and substation is drawing fire from neighbors and Rockland County officials. Critics cite environmental concerns, lithium-ion battery fire risks, and zoning inconsistencies. Allegations of “segmentation” under SEQRA and proximity to protected wetlands have led opponents to call for a full Environmental Impact Statement. The Planning Board is now under pressure to reconsider approvals for what was once seen as a slam dunk.
Delaware Megaproject Would Consume More Power Than Entire State
A proposed 1.2 GW, $10 billion data center in Delaware City would use nearly twice the electricity consumed by all Delaware households. With no identified tenant, the Starwood Capital project is under fire for its projected 8.7 million MWh energy use and 13 million gallons/day water demand. Legislators, utilities, and environmental groups are raising red flags over siting, transparency, and grid impacts. A public town hall will be held July 24 to address growing community unease.
Virginia Explores Advanced Nuclear Reactor to Power Data Center Growth
With data center demands soaring, Virginia is exploring an advanced nuclear reactor for Wise County. Backed by $197,500 in grants, officials will assess feasibility, siting, and partnerships for a small modular reactor (SMR) near a university campus and future data center park. While public concerns persist, leaders tout nuclear as a reliable, carbon-free solution for meeting AI-era loads. The project reflects growing bipartisan support for nuclear energy in the state’s evolving energy mix.
Residents Battle $5.8B Data Center in Monroe County, Georgia
A $5.8 billion, 900-acre data center campus near Bolingbroke, GA is facing intense pushback from nearby residents. Locals cite industrial noise, destruction of rural character, and environmental concerns—including endangered species and construction disruption. The rezoning battle is expected to lead to lawsuits regardless of the outcome, adding Monroe County to the growing list of Georgia communities grappling with data center fatigue.
University of Michigan’s $1.2B Data Center Sparks Environmental Concerns
University of Michigan’s planned $1.2 billion AI research data center is drawing fire from residents over river contamination fears, tax exemptions, and increased electricity use. Though the university claims water will be sourced and discharged via municipal utilities—not the Huron River—residents remain skeptical. With data centers receiving state tax breaks and no property tax liability, critics say the public is footing the bill for AI infrastructure without accountability.
Indiana NAACP Sounds Alarm Over Unchecked Data Center Growth
NAACP leaders in Indiana are calling for national policy reforms to protect vulnerable communities from the hidden costs of hyperscale data centers. A recent resolution warns that rising utility rates, air pollution from delayed coal retirements, and lack of transparency are disproportionately impacting low-income and minority neighborhoods. The group is pushing for algorithmic and environmental impact assessments, community benefits agreements, and federal guardrails to ensure AI growth doesn’t come at public expense.
Can Data Center Demand Drive Renewable Energy Investment?
Despite their vast energy appetites, data centers may become unlikely accelerators of renewable energy, executives suggest. At a recent AI summit, leaders likened AI factories to energy-intensive smelters that can justify and fund new clean power projects. While fossil fuels remain short-term necessities, long-term expectations center around solar, natural gas, and even nuclear. The industry is banking on efficiency gains and sustainability mandates to align environmental and economic goals.
Midwest and Great Plains Face Water-Energy Dilemma from Data Centers
Data centers are booming across Iowa, Wisconsin, Kansas, and Texas, but their massive energy and water needs are raising red flags. A Microsoft campus in Iowa now leads local water usage, and QTS projects are being scrutinized for aquifer depletion. Utilities are delaying coal plant closures and building new gas infrastructure, while Sierra Club leaders warn of rising bills and fossil-fueled backsliding. As one expert put it: “The threat of data centers to a livable planet is very real.”
Maryland Residents Pay the Price for Virginia’s Data Center Growth
A proposed 70-mile transmission line project could cost Marylanders $800 million—all to power Virginia’s data center boom. Critics are urging the state to instead explore on-site microreactors, sodium-ion batteries, and localized clean energy. While Europe and Asia push forward with these innovations, U.S. regulations and entrenched interests are holding back domestic adoption. The author calls it a case of “regulatory paralysis” and a missed opportunity for Maryland’s energy independence.
Georgia Pauses State-Level Data Center Reviews Amid Environmental Concerns
Georgia’s Department of Community Affairs has paused its review of new data center proposals, drawing criticism from environmental groups who say local water planners need state-level expertise. Meanwhile, a Georgia House subcommittee is studying the impact of data centers on water and electricity usage. The move comes as multiple counties, including DeKalb and Bartow, have imposed moratoria and Atlanta has enacted zoning restrictions on new centers.
Alberta Promotes Itself as a Prime AI Data Center Destination
Alberta is touting itself as a global AI data center haven. With abundant land, cold climate, water access, deregulated power markets, and skilled labor, the province is marketing a $100 billion development opportunity. Energy Minister Nate Glubish emphasizes nuclear, renewables, and retrofitted generators as solutions to overcome global equipment delays. With strong fiber infrastructure and a favorable regulatory environment, Alberta is positioning itself as Canada’s hyperscale alternative.
Amazon Revealed as Company Behind Tucson’s Controversial ‘Project Blue’
After months of secrecy, leaked documents have confirmed Amazon Web Services is behind Tucson’s massive 290-acre “Project Blue” data center. Local officials—many bound by NDAs—were unaware until now. Critics have slammed the project for lack of transparency, water and energy impacts, and zoning concerns. With public meetings now underway, opposition is mounting, demanding accountability, environmental protections, and open governance.
West Virginia’s Push for Data Centers Raises Transparency and Pollution Concerns
West Virginia lawmakers have fast-tracked new incentives for data centers, including off-grid natural gas plants, while stripping local zoning and environmental controls. Projects are proposed in Tucker, Mingo, Berkeley, and Mason counties. Critics say the lack of transparency, heavy water use, air pollution, and limited local tax benefits make these projects risky. Communities are rallying for more information and public input as the state courts tech developers.
Georgia Approves 6,000 MW of Renewables to Meet Data Center Demand
Georgia’s Public Service Commission approved the state’s 2025 Integrated Resource Plan, authorizing up to 8,500 MW of new renewable energy—driven in large part by data center demand. The plan includes funding for battery storage, demand-side efficiency, and quarterly reviews of large customer loads. Officials say the move helps preserve affordability while supporting rapid digital infrastructure growth.
Massachusetts Warned as Other States Recoil from Data Center Boom
At a forum hosted by Sen. Ed Markey, experts from Virginia, Tennessee, and Indiana warned Massachusetts leaders of the dangers data centers pose—rising rates, fossil fuel reliance, and community health risks. The event coincided with the Trump administration’s announcement of executive orders to fast-track AI infrastructure, including suspending environmental reviews. Markey emphasized the need to balance innovation with environmental justice.
Trump’s AI Action Plan Sparks Debate Over Regulation, Energy, and Transparency
The Trump administration’s newly released “AI Action Plan” has ignited debate across tech and policy circles. The plan aims to cut regulations, boost exports of AI infrastructure, and accelerate data center construction. Experts question whether implementation can succeed amid government cuts and regulatory bottlenecks, and warn of sidelining environmental and ethical safeguards. The policy shift could signal more top-down expansion, less public oversight, and faster strain on local grids and communities.
