Last Update: 08/01/2026 at 1:34 PM EST

Mid-day Briefing: Data Centers

Saturday, June 13, 2026 · 6:48 PM EDT

Key developments

WTOP NEWS

Virginia House drops data center standards, seeks commission

Virginia House budget leaders released an updated spending plan that removes environmental conditions previously tied to the state’s 5.3% sales and use tax exemption for data centers. The proposal would instead create a data center accountability commission to study energy-cost shifting, air quality, water conservation, renewable energy, community impacts, and local tax effects, with a report due Nov. 1. The House plan preserves an exemption worth about $1.6 billion annually to the industry, while Senate leaders continue pushing either early termination or a tiered impact fee projected to raise $1.7 billion.

Why it matters

Virginia remains the country’s most important data center market, and the budget fight will shape whether the state prioritizes incentives, environmental conditions, or new impact fees.

Sources & driving stories

WISCONSIN PUBLIC RADIO

Oracle seeks lower Wisconsin data center collateral

We Energies and Oracle asked Wisconsin regulators to revisit financial-security requirements in a special rate structure for data center-scale customers. The Public Service Commission’s spring order requires customers below an A- credit threshold to post collateral for infrastructure costs; Oracle, which has a BBB rating, says the Port Washington Lighthouse campus could face more than $7 billion in required security and annual costs above $100 million. We Energies and developers want a waiver or stepped approach for highly creditworthy customers, while ratepayer advocates and environmental groups argue conservative safeguards are needed because dedicated generation could leave existing customers exposed.

Why it matters

The case is an early test of whether utility commissions can impose strict credit protections on AI-scale loads without derailing multibillion-dollar projects.

Sources & driving stories

WISCONSIN PUBLIC RADIO

Wisconsin Public Radio coverage
WTOP NEWS

Montgomery County pauses new data center permits

Montgomery County Executive Marc Elrich issued a six-month executive-order moratorium on accepting and processing permit applications for new data centers. County officials said Montgomery has no data-center-specific rules, while council proposals would define the use, limit facilities to industrial zones under conditional review, and add noise, environmental, and siting conditions. The pause will not stop planning board work with Atmosphere Data Centers on a proposed Dickerson site at a former coal-fired power plant, but no permit will be issued during the moratorium.

Why it matters

The move adds a major Washington-area county to the growing list of local governments slowing approvals while they write rules for power, water, noise, and land-use impacts.

Sources & driving stories

Worth noting

WORTH NOTING

Seattle proposes large-load rate class

Seattle City Light proposed moving new or expanding data centers of 10 MVA or more out of general service rates, with City Council committee review scheduled for June 17, while Seattle separately maintains a one-year moratorium on siting facilities above 20 MVA inside city limits.

WORTH NOTING

Florida tariff fight tests SB 484

Florida’s Office of Public Counsel says Duke Energy’s proposed data center tariff does not comply with SB 484 because it could sidestep requirements that hyperscale AI data centers pay their full utility costs rather than shifting them to residents.

WORTH NOTING

Power access slows project pipeline

Avista paused talks with a potential 500 MW data center customer in Spokane to seek policy and community alignment, while Stream Data Centers canceled Project Liberty in rural South Carolina after failing to source utility power within its required timeframe.

Still unclear

OPEN QUESTION

Will cost-shift protections survive investment pressure?

Wisconsin, Florida, Seattle, and Virginia are all wrestling with whether stricter utility tariffs, collateral rules, or impact fees will protect ratepayers without pushing data center projects elsewhere.

OPEN QUESTION

Are power constraints becoming the main siting gate?

The Avista pause, South Carolina cancellation, and multiple moratoria suggest grid availability and infrastructure cost allocation may now determine project viability as much as land-use approval.