Key developments
California tightens data-center water and cost rules
On May 26, a Davis Enterprise report on a Next10 and Santa Clara University study said California data-center projects still disclose very little about water use, even as planned facilities move into water-stressed Central Valley and Imperial Valley locations. The same day, Sen. Steve Padilla said SB 886 and SB 887 passed the Senate, with the bills directing the CPUC to shift transmission costs to large data centers, conditioning Environmental Leadership Development Project status on water and clean-energy requirements, and clarifying that data centers are not exempt from CEQA. The package now goes to the Assembly.
Why it matters
California is moving toward a stricter model that could raise compliance costs and force more disclosure for new data-center builds.
Sources & driving stories
DAVIS ENTERPRISE
Davis Enterprise coverageCALIFORNIA STATE SENATOR STEVE PADILLA
California State Senator Steve Padilla coverageCounties and courts keep slowing data centers
Iron County, Utah, approved a 180-day pause on accepting and processing data-center and related power-plant applications, citing concerns about rural land conversion, water, roads, and utility capacity. Dubuque County, Iowa, passed a 12-month moratorium, and a Minnesota judge temporarily halted construction on a Google-backed project in Pine Island after finding the environmental-review challenge likely to succeed. The actions point to a widening local backlash as communities try to rewrite land-use rules before projects move too far ahead.
Why it matters
A broader approval slowdown could delay projects even where state-level policy has not changed.
Sources & driving stories
IREN and TeraWulf expand AI data-center capacity
IREN agreed to buy $1.6 billion of Nvidia Blackwell systems from Dell for AI cloud deployments tied to its Childress, Texas campus, signaling another large hardware commitment in the AI infrastructure race. TeraWulf separately acquired the Muskie Data Campus in Kentucky inside EastPark Industrial Park and said the site could exceed 1 GW over time, with 500 MW targeted in the second half of 2028 and the remainder in the second half of 2030. The site comes with pre-signed utility agreements and a 345 kV substation connected to Kentucky Power's transmission buildout.
Why it matters
These deals show that power-secured sites and access to high-end chips remain the main bottlenecks in AI data-center expansion.
Sources & driving stories
YAHOO FINANCE
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Nasdaq coverageWorth noting
WORTH NOTING
Massillon drafts data-center zoning rules
The city is defining size thresholds, zoning districts, setbacks, and utility prerequisites before approving new projects, which signals a move from ad hoc review to formal local rules.
WORTH NOTING
Pennsylvania PUC floats large-load tariff
The commission's nonbinding recommendations would make large users like data centers pay full infrastructure costs and disclose more information, a model other states may watch.
Still unclear
OPEN QUESTION
Will California Assembly move the bills fast enough?
SB 886 and SB 887 have cleared the Senate, but the Assembly will determine whether the new cost, water, and CEQA rules reach pending projects this year.
OPEN QUESTION
Will local pauses become permanent standards?
Several counties are using moratoria as a bridge to new zoning rules, but the long-term permitting framework is still unsettled.