Water, power and permits tighten the map
The clearest project movement came in Utah, where the proposed Box Elder data center was effectively narrowed while its water path was reset. State officials said the original application to convert about 1,900 acre-feet of agricultural water rights to industrial use was withdrawn and will be refiled after changes to the plan. Gov. Spencer Cox also framed the state’s focus as a first phase of roughly 1.5 gigawatts on less than 2,000 acres rather than the much larger full buildout that drew attention and backlash. That does not clear the project: additional permits and public hearings still stand between approval and construction.
Elsewhere, local governments spent the day trying to get ahead of data center growth rather than simply welcome it. Charlotte is considering a 150-day moratorium on new applications while it studies health, environmental, water, and power impacts; a hearing is set for May 26 and a vote is expected June 8. In Cleveland, a 150 MW hyperscale proposal was filed May 5 and is now racing a possible city moratorium, highlighting how timing around plan acceptance and building permits can decide whether projects slip through under current rules. In Atlanta, a Blandtown project appears positioned to move forward because it was approved before the city tightened Beltline-area restrictions.
Illinois offered the broader policy picture. ComEd told local officials that peak demand in its territory could more than double by 2040 if queued large-load projects materialize, while municipalities are already splitting over the tradeoff between tax base and neighborhood impacts. Aurora has moved to require developer studies on noise, vibration, water, and energy use, and state lawmakers are weighing a POWER Act that would push more infrastructure costs, efficiency obligations, water disclosure, and community-benefit requirements onto operators. Similar pressure surfaced in Georgia, Texas, and Indiana, where residents and advocates are focusing less on jobs and more on water accounting, diesel backup emissions, noise, and who pays for the grid upgrades.
Key Points
- Utah’s Box Elder proposal was scaled back to an initial roughly 1.5 GW phase, and its original water-rights conversion filing was withdrawn for revision
- Charlotte may pause new data center applications for 150 days, adding another city-level brake tied to water, power, and resident impact concerns
- A 150 MW Cleveland proposal was filed ahead of a possible moratorium, showing how permitting timing is becoming a project risk in its own right
- Illinois utilities and lawmakers are moving from general growth talk to cost allocation, disclosure, and local operating standards as large-load demand rises
Implications
Projects with uncertain water sourcing, noisy cooling plans, or unresolved utility buildout needs are likely to face slower approvals and more conditions even in pro-growth markets
The cost of getting a site entitled is rising as cities and states shift more attention to grid upgrades, wastewater handling, backup generation, and community impacts
Things to watch
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Whether Charlotte’s council adopts the moratorium in June and how broadly it applies
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How Utah refiles the Box Elder water application and whether the revised phase changes opposition or permitting timelines
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Whether Illinois advances the POWER Act or similar rules that make large-load customers bear more infrastructure and disclosure requirements