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Key developments
Illinois pauses new data center incentives
Croke Fairchild Duarte & Beres and E&E News reported that Illinois Gov. JB Pritzker directed the Illinois Department of Commerce and Economic Opportunity to stop processing new Data Center Investment Program agreements starting July 1, 2026, while honoring deals already signed. Pritzker said the pause is meant to give lawmakers time to revisit incentives after spring-session legislation failed to advance a broader data-center regulatory package. His framework calls for data-center-specific electricity rates, interruptible service during grid strain unless facilities self-supply clean energy, tighter water permitting, backup-generator emissions standards, disclosure rules, and bans on nondisclosure agreements with local governments.
Why it matters
It puts Illinois data-center incentives on hold and raises the odds of new cost, water, and emissions requirements for projects in the state.
Sources & driving stories
CROKE FAIRCHILD DUARTE & BERES
Croke Fairchild Duarte & Beres coverageE&E NEWS BY POLITICO · Shia Kapos
E&E News by POLITICO coverageCoachella moves toward permanent ban
KVCR News reported that the Coachella City Council approved a 45-day moratorium on new data center development and directed staff to draft language for a permanent ban. The council also terminated its development agreement with Stronghold Power Systems. Stronghold had proposed the Coachella Valley Technology Campus on up to 450 acres near Avenue 52 and Fillmore Street, with six data centers and first-phase buildings of roughly 1 million square feet each.
Why it matters
It significantly raises the odds that one of the region's largest proposed campus projects will not move forward.
Sources & driving stories
KVCR NEWS
KVCR News coverageGoogle unveils Texas water and power plan
FOX 7 Austin reported that Google launched a $10 million Texas Water Impact Fund for communities where it wants to build data centers, aimed at infrastructure upgrades and watershed investments. Data Center Knowledge reported that Google is also trialing a "power-first" model in Texas, with the Meitner site expected to be co-located with more than 1 GW of wind, solar and battery storage plus on-site gas generation for reliability. Google said nearly a dozen Texas projects are underway or in the works.
Why it matters
It shows Google trying to pair new Texas data-center loads with dedicated power and water mitigation to reduce local resistance.
Sources & driving stories
FOX 7 AUSTIN
FOX 7 Austin coverageDATA CENTER KNOWLEDGE
Data Center Knowledge coverageWorth noting
WORTH NOTING
Microsoft Cheyenne campus stalls
The planning commission failed to endorse the 3,200-acre Microsoft campus land-use changes, sending the proposal to City Council and exposing scale, housing and water concerns.
WORTH NOTING
Allen Park rejects Solstice site plan
Planners denied a 26-megawatt proposal and backed a six-month moratorium, citing zoning gaps, missing engineering studies and noise concerns.
WORTH NOTING
New York hyperscale ban advances
State lawmakers approved a one-year moratorium on hyperscale facilities above 20 MW, putting the bill in Governor Hochul's hands.
Still unclear
OPEN QUESTION
Will Illinois convert the pause into enforceable rules?
Pritzker's broader framework would materially change project economics, but the veto-session path and legislative appetite are still unresolved.
OPEN QUESTION
Can Coachella's temporary action become permanent?
Staff still has to draft a ban, and Stronghold may challenge the council's termination or any future ordinance.