This week’s Zoning In highlights several major developments, including a proposed three-year statewide moratorium in Virginia, new restrictions in Maryland and Delaware, and a legal challenge to a $35 billion project in Pennsylvania.
Meanwhile, nearly $87 million has been spent on political ads mentioning data centers ahead of the midterms, and a new report estimates Georgia schools could lose $300 million this year due to data center tax exemptions.
From heated town halls to lawsuits and moratoriums, communities are making it clear that economic benefits alone aren’t enough. For developers, early engagement and building local trust are becoming just as critical as securing land, power and permits.
De Soto Data Center Plans to Offer $1,000 to Households, but Neighbors Say They’re Not So Sure
Digital Realty is offering De Soto, Kansas, households up to $1,000 annually for 10 years in property tax or utility relief as part of a $20 million community investment. However, residents remain skeptical, with some characterizing the payments as an attempt to buy support while questions about the project’s long-term impacts remain unanswered. The controversy underscores how financial benefits alone may not overcome a lack of community trust.
Political Campaigns Have Spent $87M Making Data Centers a TV Villain
Data centers have become a major political issue ahead of the midterms, with candidates and outside groups spending nearly $87 million on campaign ads mentioning the industry across 38 states. The issue is gaining traction among both parties, raising concerns about tougher regulations and continued opposition after Election Day.
Aligned Data Centers Files Court Documents Regarding Pataskala’s Rejection of Data Center
Aligned Data Centers is appealing an August decision by Pataskala, Ohio, officials to reject its proposed 200-megawatt, three-building campus following months of community opposition. Meanwhile, residents will have an opportunity to vote on a broader data center ban in November, adding another layer of uncertainty to the project’s future.
The CEO of ServerDomes publicly apologized to residents and officials in Hudspeth County, Texas, after construction began on a proposed $15 billion data center project without meaningful advance community notification. The developer has since outlined plans for community investments, infrastructure improvements and public engagement. The situation highlights the risks of moving forward with a major development before establishing relationships and communicating with local stakeholders.
Data Center Opposition Returns to Courthouse
Residents in Fayette County, Texas, are urging county commissioners to oppose a proposed data center development near Winchester and reject potential tax incentives. Neighbors are raising concerns about drainage, water, noise, power demands and emergency response capabilities, while calling for independent studies and greater accountability. Community opposition continues to organize, with another public meeting scheduled for November 2.
Lehigh Valley Town Already Facing Data Center Zoning Challenge Now Faces Another
A developer in Upper Mount Bethel Township, Pennsylvania, has filed a second zoning challenge seeking approval for an expanded data center campus that could ultimately reach 2 gigawatts. The latest proposal includes four data center buildings, battery storage and a power plant at a former coal-fired generating station, complementing an earlier proposal for 23 buildings nearby. Developers argue that existing zoning regulations improperly restrict data centers, setting up another legal battle over local land-use authority.
Fauquier County Moves to Restrict Data Center Development
Fauquier County, Virginia, has approved new zoning restrictions that effectively limit future data center development to the Vint Hill area, removing the facilities as a permitted use in business park districts. The changes follow eight withdrawn proposals and ongoing concerns about electricity demand, environmental impacts and proximity to residential neighborhoods. Future projects will also face additional approval requirements and stricter cooling and power infrastructure standards.
Maryland Puts Brakes on Data Centers
Maryland is tightening oversight of data center development following Governor Wes Moore’s executive order establishing additional review requirements for projects of 25 megawatts or more. The state also plans to introduce a public data center dashboard tracking project details, electricity demand and water use. Meanwhile, several Maryland counties have already implemented moratoriums or outright bans as concerns about utility costs, environmental impacts and rapid development continue to grow.
In a First for Delaware, Dover Passes Moratorium on Data Center Development
Dover has become the first municipality in Delaware to adopt a data center moratorium, unanimously approving an 18-month pause on reviewing proposals for facilities consuming more than 30 megawatts. Officials plan to use the time to study potential impacts on electricity costs, infrastructure and the environment while determining appropriate regulations. The decision reflects a growing trend of communities slowing development to establish clearer rules before approving projects.
Alexandria Officials Join March Protesting Plaza 500 Data Center Near City Border
Alexandria, Virginia, elected officials joined residents and environmental organizations in a protest calling for a statewide moratorium on new data center development. The demonstration focused partly on the proposed Plaza 500 campus in neighboring Fairfax County, where residents are concerned about noise, environmental impacts and a planned electrical substation. Although the data center is permitted under existing zoning rules, opponents are targeting the substation approval process as a potential way to stop the project.
Residents gathered outside the Roanoke County Administration Center to protest potential data center developments across Southwest Virginia. Organizers emphasized that project announcements and preliminary approvals do not guarantee construction, urging residents to remain involved throughout the lengthy development and permitting process. The demonstration reflects the continued spread of organized data center opposition into emerging markets.
Data Center Fears Spark Heated Walls Listening Session
A community listening session in Walls, Mississippi, turned contentious as residents pressed local officials about the possibility of a data center development and questioned the town’s transparency. The concerns follow the rejection of a 1,200-acre industrial rezoning request and ongoing controversy surrounding xAI’s nearby Southaven facility. Although the mayor maintains that no data center is currently planned, residents remain skeptical, illustrating how opposition can emerge even before a project is formally proposed.
Westfield, MA Denies Extension for Proposed $4 Billion Data Center
The Westfield, Massachusetts, Planning Board has rejected a request for a three-year extension of a special permit for Servistar’s proposed $4 billion data center. Originally approved in 2021, the project has faced delays and growing community concerns over noise and environmental impacts. Although the development was exempt from the city’s recently adopted one-year data center moratorium, the decision creates additional uncertainty for its future.
Residents Sue Newport Township, Commissioners Over Data Center Campus Approval
Residents in Newport Township, Pennsylvania, have filed a lawsuit challenging approvals for a proposed $35 billion, 15-building data center campus, alleging violations of the state’s Sunshine Act and improper public notice. The lawsuit seeks to invalidate zoning changes that allowed data centers by right across much of the township. The dispute highlights how concerns over transparency and procedural compliance can create significant legal obstacles for large-scale developments, even after zoning approvals have been issued.
Data Center Proves a Tough Sell at Elizabeth Township Town Hall
A proposed 3 million-square-foot data center campus in Elizabeth Township, Pennsylvania, faced strong opposition during a packed town hall meeting. Residents questioned the developer about water and electricity demands, noise and environmental impacts, while expressing frustration over the lack of specific project details. Despite projections of $125 million in annual tax revenue, a local state representative announced his opposition, highlighting the challenges developers face when significant community concerns remain unanswered.
Virginia Senator Proposes Three-Year Statewide Data Center Moratorium
Virginia State Senator Russet Perry has proposed a three-year statewide moratorium on data center approvals beginning in July 2027, arguing that lawmakers need time to establish stronger protections for communities, utilities and natural resources. The proposal comes as Loudoun County considers its own 12-month pause and other Virginia jurisdictions tighten development restrictions. If enacted, the measure could significantly disrupt development in the nation’s largest data center market.
Taking Data Centers to Court — With Martha Dark
Legal challenges are becoming an increasingly important tool for data center opponents seeking greater oversight of proposed developments. In a podcast interview, Foxglove co-executive director Martha Dark discusses how litigation can challenge project approvals, strengthen regulatory accountability and push back against industry narratives. The conversation highlights the growing role of the courts in shaping the future of data center development.
‘A Very Serious Health Concern’: Opponents to Ahwatukee Data Center Share Worries at Town Hall
Arizona Attorney General Kris Mayes is calling for a temporary statewide data center moratorium following a town hall where residents raised concerns about noise, air quality and proximity to homes. Her office is investigating Menlo Digital’s 257-megawatt campus under construction in Ahwatukee and is considering a nuisance lawsuit. While Governor Katie Hobbs supports stronger regulations, she has stopped short of endorsing a moratorium.
Georgia’s Building Boom for Data Centers Comes With a Cost for Schools: $300M
A new analysis from Good Jobs First estimates that Georgia school districts will forgo approximately $300 million this year because of sales tax exemptions granted to data center developers. The findings are fueling questions about whether communities are receiving a fair share of the industry’s economic benefits, particularly as school districts face mounting budget pressures. The report adds another dimension to the debate over data center tax incentives and their long-term impact on local communities.
Data Center Developer Says the Industry Has to Rethink Its Approach After Pushback
As Tennessee communities increasingly consider data center moratoriums, Host Digital CEO Harmol Samra says developers need to rethink how they approach projects and engage with residents. Samra argues that temporary moratoriums can provide an opportunity to establish reasonable regulations, address community concerns and build relationships rather than simply halt development. He also advocates for smaller projects, greater transparency and community benefits shaped by local needs.
Construction Traffic Draws Complaints as Data Center Projects Advance
Residents in Saline Township, Michigan, are raising concerns about speeding vehicles, heavy truck traffic and other construction impacts associated with the Oracle and OpenAI data center project. Local officials are working with the developer to address road safety, lighting, noise and groundwater concerns. Meanwhile, other Michigan communities are considering new zoning restrictions, and Google’s proposed 1.5 million-square-foot campus in Van Buren Township has received final site plan approval despite continued opposition.
Data Center Rules in Mass Raise Legal Questions for Developers
Massachusetts’ new executive order requiring community benefits agreements for data centers exceeding 25 megawatts is raising questions about enforcement, existing projects and permitting requirements. The order also addresses clean energy procurement, water protection, utility costs and transparency. A legal dispute involving a Lowell data center illustrates the growing importance of early community engagement and the potential consequences for developers who fail to address neighborhood concerns before projects move forward.
Man Dragged From Iowa Meeting for Protesting Microsoft Data Center
A contentious public meeting in Woodward, Iowa, escalated when a resident was forcibly removed after challenging officials over Microsoft’s proposed 600-acre data center development. Residents raised concerns about environmental impacts, transparency and their inability to vote directly on the project. The confrontation highlights growing tensions surrounding data center development and the importance of meaningful community engagement early in the process.
Virginia Launches Data Center Accountability Framework
Virginia Governor Abigail Spanberger’s new executive order introduces sweeping measures addressing data center transparency, environmental impacts, electricity costs and community engagement. The framework restricts certain state development assistance for projects exceeding 25 megawatts, limits nondisclosure agreements and directs agencies to develop new guidance on noise, water use, emissions and community benefits. While many requirements are still being developed, the initiative signals a significant shift toward greater accountability and regulatory oversight in the nation’s largest data center market.
