Welcome to this week’s edition of Zoning In. The biggest signals this week came from San Marcos rejecting a $1.5B rezoning after a marathon public hearing, Illinois Gov. Pritzker proposing a two-year pause on new data center tax credits, and a broader tightening of the rules of engagement, from Washington’s push for stronger utility/ratepayer protections to Minnesota’s one-year ban and small towns like Columbiana, AL, codifying stricter zoning standards.
At the same time, the process of fighting is getting sharper. In Marana, a major referendum push against Project Blue fizzled on technicalities.
In case you missed it: If you’re planning a data center town hall/info session, be sure to check out Adam Waitkunas’ latest piece on designing meetings that build trust instead of backlash:
San Marcos leaders reject $1.5B data center following public outcry
San Marcos, Texas council members voted around 2 a.m. to reject a rezoning request for a nearly 200-acre, $1.5B data center after hours of packed public testimony and organized protests outside City Hall. Opponents framed the project as a local quality-of-life and resource-risk issue benefiting outsiders, while labor voices backed it as a major jobs and stability opportunity. The late-night vote underscores how these fights are increasingly decided in marathon hearings where turnout, narrative, and coalition strength matter as much as technical details.
Data centers in Alabama: Shelby County town puts ‘very strict guidelines’ in place
Columbiana, Alabama amended its zoning ordinance to impose “very strict guidelines” on future data centers, signaling a proactive posture rather than waiting for a proposal to force reactive decisions. Leaders framed it as protecting the town’s long-term development trajectory and ensuring any future project meets clearly defined standards. The takeaway: smaller communities are increasingly moving to pre-set rules of engagement—especially around siting, design, and infrastructure expectations.
Marana rejects referendums against Project Blue data center rezoning
Marana officials shut down two referendum efforts aimed at overturning rezoning approvals tied to the “Project Blue” data center sites, saying the petitions failed a basic legal requirement: they did not include the legal description of the rezoned properties as required under Arizona law for zoning measures. That finding ended the process before signature verification could continue, effectively killing the ballot route. The episode also sparked a messy rift among opponents—after Worker Power (sponsoring entity behind the PAC) asked to withdraw the petitions, which local coalition partners publicly denounced as a “betrayal.” Net: the fight shifts away from a voter referendum and back toward political/legal channels (and elections), while underscoring how procedural errors can nullify even large signature drives.
Michigan residents continue organizing town halls and protests in response to new data center proposals, demanding stronger zoning controls and transparency. Advocacy groups argue communities are questioning who truly benefits from projects that carry environmental and grid impacts. Creative mitigation ideas — such as waste-heat reuse — are surfacing, but resistance momentum remains strong.
Logix Realty Indiana development denied due to community concerns and developer “red flags”
Clinton County, Indiana commissioners unanimously denied Logix Realty’s rezoning request after intense local pushback and concerns about the developer’s transparency and negotiation posture. Officials cited “red flags” — including what they viewed as nickel-and-diming on basic infrastructure responsibility (like road improvements), unclear fiscal numbers, and unanswered questions about end users. The denial triggers a 12-month waiting period before the project can refile, reinforcing how quickly credibility gaps can become fatal in high-scrutiny markets.
State lawmaker calls on Imperial County officials to halt controversial data center project
California State Sen. Steve Padilla is calling on Imperial County to pause a controversial data center project, arguing the planning process has been “shrouded in secrecy” and key questions on water/energy still aren’t answered to his satisfaction. County supervisors say they’ve engaged in good faith and provided information, noting (per their letter) no incentives/tax exemptions have been granted and no permits issued yet, and emphasizing expectations that developers would use reclaimed water/alternative cooling and fund needed infrastructure. The backdrop includes active litigation—cities and developers suing over whether a fuller environmental analysis is required—making this a high-profile test case for “ministerial pathway vs. meaningful review” in the AI-era buildout.
Proposal to build data center in Mercer County sparks debate among community members
A potential data center in Mercer County, Kentucky is triggering early backlash, with residents saying they feel blindsided and organizing petitions around farmland preservation and trust concerns. Supporters — including a local school district — point to the possibility of major tax revenue, while opponents argue incentives and loopholes can shift long-term costs back onto residents. County leadership says no formal application has been filed yet, but a consultant has been retained and a public meeting is set — signaling the debate is moving from rumor to process.
Arrest made during heated Claremore meeting over proposed data center
A public meeting in Claremore, Oklahoma about a proposed data center escalated to an arrest after a speaker reportedly refused to follow meeting rules and exceeded allotted time. Residents packed the session raising familiar pressure points—water (especially for well-dependent neighbors) and power/infrastructure capacity. City and economic development officials emphasized the project is still early-stage, described it as air-cooled with limited water needs, and said the developer would be expected to fund any required electrical upgrades—though that would need to be formally codified by council later. No vote was taken.
In Adams County, Ohio, residents packed a citizen-led meeting to push back on county leaders courting data center development at two former power plant sites—locations marketed as “ideal” because they already have major power/water infrastructure. Skeptics questioned whether promised economic benefits would actually land locally (versus nearby towns), raised quality-of-life concerns like 24/7 construction, and pointed to the community’s lingering economic trauma from plant closures. The story also flags early-stage deal mechanics: multiple land purchases/options since 2021, active marketing of the sites, and NDAs signed as discussions proceed—while residents demand transparency and a real say before anything formal advances.
Mercer County residents rally against proposed data center development
Opposition in Mercer County, Kentucky is accelerating fast, with an anti–data center petition surpassing 1,700 signatures ahead of a joint planning and zoning meeting. Residents say the project threatens prime farmland, local businesses (including horse operations concerned about noise), and could set a precedent that makes future farmland rezoning hard to stop. Even with uncertainty about the exact site, the fight is already crystallizing around “irreversibility,” quality-of-life impacts, and who ultimately bears infrastructure and utility costs.
I-Team digs into potential effects of data centers in the Triangle, nationwide: ‘A huge concern’
ABC11’s I-Team situates local Triangle-area anxiety inside a national pattern: data centers are becoming “city-scale” loads that can require billions in grid upgrades, fueling fear of cost shifts to ratepayers. Residents near a proposed Apex project cited worries about water, diesel generator pollution, and especially the low-frequency noise profile. The piece also notes state-level attention: Gov. Josh Stein points to a policy direction—ensure data centers bear the costs of new generation/transmission needed to serve them—while the industry argues data centers are essential infrastructure for everyday life and U.S. competitiveness.
Port Washington neighbors file complaint over data center approval process, triggers investigation
Opposition in Port Washington, Wisconsin escalated from protests to formal legal process: a neighborhood group filed a verified complaint alleging the city’s common council violated open meetings laws by deliberating key data center agreements in closed session. The county DA confirmed receipt and referred it to the sheriff’s office for investigation; the city disputes the allegations and says it welcomes review. This adds a new front to the dispute—process legitimacy—and increases the likelihood that “how it was approved” becomes as contentious as the project itself.
Taylor residents urge halt to BPP data center; council holds attorney consultation, takes no action
Residents in Taylor, Texas urged the city council to slow down a proposed BPP Projects LLC data center, citing lack of notice, environmental and noise concerns, limited job creation, and disproportionate impacts on a historically underserved neighborhood. The council moved into an attorney consultation on zoning/land use and returned without taking action, leaving opponents frustrated but mobilized. The through-line: communities increasingly want process transparency and enforceable studies/standards before projects harden into foregone conclusions.
POLITICO asked 2,000 people about data centers — and made 5 charts
A POLITICO/Public First poll finds data centers are becoming politically salient, with nearly half of Americans expecting them to be a campaign issue locally within five years. Support is highly price-sensitive: willingness drops sharply as hypothetical electric bill increases climb past roughly $10–$25/month, and opponents often show stronger “intensity” than supporters. The poll also highlights a major knowledge gap (many respondents aren’t confident they understand data centers), and shows attitudes swing significantly when projects are tied to President Trump and/or AI branding.
86-year-old Cumberland County man turns down millions to sell farm to data center developers
A Pennsylvania farmer rejected a reported $15M+ offer from data center developers and instead sold development rights to a land trust for under $2M to permanently preserve his farmland. He framed it as protecting family legacy, wildlife, and the character of the area — even as nearby data center construction raises concerns about traffic and broader land-use pressure. The story captures a growing tension: data centers reshaping rural land economics faster than many communities can respond.
Anti-data center group: ‘We will continue to show up’
In Carroll County, Georgia, opponents are pressing the school system to publicly reject any tax abatements that could support future data center proposals. Activists argue school-board participation can be the difference between a workable deal and a non-starter for developers, and they’re using recurring public comment to sustain pressure. A key theme: land-use identity (including protecting agricultural programs) versus the promise of tax revenue — and a strategy of keeping institutional stakeholders “on the record.”
New interactive tool tracks data centers across Prince William.
Prince William County has launched an interactive map allowing residents to track data center projects from application through completion, including substations and transmission lines. Officials frame it as a transparency tool in the nation’s largest data center market. But critics argue it omits key environmental impacts — including diesel generator counts, watershed data, and planned transmission lines — underscoring that “transparency” remains contested terrain in Northern Virginia.
Caledonia Twp. pausing data center proposals for 6 months
Caledonia Township, Michigan, has enacted a six-month moratorium on new data center applications while officials develop clearer zoning definitions and design standards. Leaders emphasized they cannot simply prohibit projects outright but must create defensible ordinances. The move reflects a broader statewide pattern of temporary pauses as communities recalibrate regulatory frameworks.
Data center transparency is public right, not PR strategy | Opinion
An opinion piece argues that transparency in Wisconsin data center development must be mandatory, not voluntary. The author criticizes the use of shell LLCs and NDAs and calls for full disclosure of energy sourcing, water use, and cost allocation — particularly as utilities consider new gas generation tied to data center demand. Litigation against the state PSC over withheld energy data highlights how energy disclosure is becoming a frontline regulatory fight.
Conflicting data center meetings cause dilemma for residents
In Pennsylvania, residents are forced to choose between overlapping public meetings for two proposed data centers located within a mile of each other. The scheduling conflict has fueled frustration, reinforcing perceptions that public engagement is fragmented and difficult to navigate. With environmental reviews and large-scale campus plans in play, even meeting logistics are becoming part of the broader trust conversation.
Allen Park residents meet with data center developer about proposed facility
Residents in Allen Park, Michigan, pressed Solstice Data over a proposed facility, raising concerns about siting, environmental impact, and long-term community effects. The developer emphasized AI-driven economic benefits and pledged to provide additional research at an upcoming city meeting. Community members, however, are organizing early — reflecting Michigan’s broader pattern of proactive local resistance.
Washington state has embraced data centers – but now it’s looking to set terms of engagement
After decades of tax incentives and open-door policies, Washington lawmakers are advancing legislation (HB 2515) requiring large data centers to disclose energy and water use, shield ratepayers from cost shifts, and comply with new reporting standards. Supporters say it codifies responsible growth; opponents warn it risks jobs and rural investment. The debate reflects a broader shift: states that once courted hyperscale growth are now demanding formal guardrails.
Data Centers Are the Enemy We’ve All Been Waiting For
This national commentary frames data centers as the latest flashpoint in grassroots backlash against Big Tech, linking local fights over water, energy, and zoning to broader concerns about corporate power and AI. The piece highlights moratorium efforts across Michigan, Georgia, Wisconsin and beyond, arguing that hyper-local resistance is beginning to influence state and national political narratives.
Data center growth has helped PG&E cut rates 11% since 2024, CEO says
PG&E’s CEO says accelerated large-load growth — including data centers — has helped reduce electric rates by 11% since 2024 by spreading fixed costs across greater demand. The utility maintains that each additional gigawatt of load lowers bills by roughly 1%. Still, wildfire liabilities and California regulatory policy remain affordability headwinds, illustrating how rate impacts tied to data centers can cut both ways in public debate.
Hays County officials push back on proposed AI data centers over water concerns
Officials in Hays County, Texas, are proposing a moratorium on large water-use developments as a 200-acre AI data center project near San Marcos advances. With the facility projected to use up to 25 million gallons annually, local leaders warn of worsening drought conditions and long-term water strain. The episode highlights how water scarcity is emerging as a central political vulnerability for AI-driven projects in Texas.
Washington Democrats pass bill Republicans warn will chase data centers out of Washington
Washington’s HB 2515 cleared the House amid sharp partisan debate. Democrats argue the bill protects ratepayers and requires accountability from large energy users; Republicans contend it unfairly targets data centers and threatens rural job growth, citing Quincy’s economic transformation as proof of industry benefits. The measure now moves to the Senate.
Federal officials are encouraging tribes to partner with data centers
Federal agencies are pitching data center partnerships to tribes as an economic development pathway — from land leases to energy sales and on-site infrastructure buildouts. Supporters argue the model can bring major revenue, expand broadband, and strengthen “data sovereignty” by enabling tribes to host/own their data. Critics and some tribal members raise concerns about environmental impacts (especially water and fossil fuel reliance) and the risk of sovereignty tradeoffs, framing these deals as high-upside but high-stakes decisions.
Almost half expect data centers to be campaign issue: Polling
The Hill highlights the same POLITICO/Public First polling: nearly half of respondents expect data centers to become a local campaign issue, and support erodes as power-bill impacts rise (a meaningful share flips to opposition at +$25/month). The piece situates this in the broader “who pays” fight, noting heavy hyperscaler investment, growing concern over energy and water impacts, and political pressure — including Trump’s “pay their own way” messaging — that is pushing companies to make stronger cost-coverage commitments.
Ohio lawmakers consider repealing tax breaks for data centers
Ohio lawmakers from both parties are again eyeing a rollback of long-standing sales-tax exemptions for data centers, arguing the industry is mature enough to “pay its share” — especially as communities worry about grid and water impacts. Gov. Mike DeWine vetoed a repeal effort in the last budget on competitiveness grounds, but legislative leaders are signaling a possible veto override push this session. The debate is being framed less as anti-tech and more as “cost-shift prevention,” with lawmakers emphasizing ratepayer protection and questioning whether temporary construction jobs justify ongoing incentives.
Land Grab for Data Centers Is One More Obstacle to Much-Needed Housing
The Wall Street Journal frames hyperscale land demand—especially in Northern Virginia—as a new accelerant to the housing shortage, as data center buyers can outbid residential developers by orders of magnitude. The piece cites headline land deals (including a reported Amazon agreement for hundreds of millions) and argues zoning, infrastructure positioning, and the sheer profitability of data center sales are pulling scarce land, labor, and materials away from housing. Politically, it highlights a turning point in places like Prince William County: officials who once welcomed data centers for tax base reasons now face voter backlash as residents argue “they’d rather have homes than data.”
Minnesota’s first-ever ban on data center, crypto operations approved
Eagan, Minnesota approved a one-year ban on new data centers and crypto mining operations meeting certain thresholds—aimed at buying time to study impacts and set clearer standards. The ordinance targets projects near residential areas and/or those with large power demands, and pauses new permits while the city evaluates environmental and infrastructure questions. It’s notable as a “first-ever” move in Minnesota and reflects the broader patchwork trend: local governments reaching for moratoriums before statewide frameworks catch up.
Columbiana passes new zoning restrictions for data centers
A second report on Columbiana’s action adds detail: the council passed the new zoning controls unanimously, following local engagement, and the ordinance includes dimensional standards, landscaping/buffers, and power/water-related requirements. Environmental advocates praised the move as an early, serious attempt to set enforceable guardrails before controversy peaks. This is part of a growing pattern: codify standards first, then evaluate projects against them—rather than negotiating everything in real time.
Northport residents pack town hall to question developer of University Beach project
While not a data center story, this one tracks a familiar dynamic: a packed town hall, heavy skepticism, and residents frustrated about timing and transparency. Northport residents pressed the developer of the $350M “University Beach” project on traffic, noise, and process, with the mayor acknowledging a strong majority opposed in the room. The developer projected confidence and intent to move forward. It’s a reminder that across project types, public process and perceived “late engagement” can become the headline.
Data center restrictions earn lawmaker endorsement as fight continues over tax incentives
South Dakota lawmakers advanced a small set of data center bills while killing others, revealing an internal tug-of-war between ratepayer/resource protections and economic incentive competitiveness. One surviving measure branded as a “Data Center Bill of Rights” would require companies to cover water/electric impacts, preserve local authority, and ban tax exemptions—prompting industry to warn they’ll walk away without incentives. Another bill would expand a separate rebate-style incentive track, and a third would ban NDAs tied to data center deals, treating them as public records. Net: South Dakota is debating the core national question in miniature—guardrails vs. incentives, and who gets to see the terms.
Granger meeting draws crowd for update on large Microsoft data center planned
A packed town hall in Granger, Indiana highlighted how “approved” doesn’t mean “settled” when details are still fuzzy. Residents pressed leaders for clearer answers on power, water, traffic, and overall scale—especially as estimates suggest the project could require up to ~1,000 MW (framed as comparable to hundreds of thousands of households). Local officials said they’re working under an NDA and still expect more specifics in coming weeks/months; they also emphasized no groundwater withdrawal (water from Mishawaka’s system), no local tax abatements sought, and commitments that Microsoft would pay for utility extensions, road upgrades, and other required infrastructure.
Pritzker to Halt Data Center Tax Perks as Power Bills Soar
Illinois Gov. JB Pritzker proposed a two-year pause on authorizing new state data center tax credits, framing it as an affordability and grid-stability move amid rising power demand and prices. He also urged PJM to require large loads like data centers to “pay their fair share” for capacity/resources needed to power operations. Business groups warned about weakening a proven economic development tool, while clean-jobs advocates applauded consumer protections. The pause would begin with the fiscal year starting July 1, and is pitched as time to study effectiveness and revenue impacts.
