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Key developments
State pushback widens on data center incentives
State-level resistance to data center incentives and utility impacts broadened this week. The National Law Review reported Illinois will pause new Data Center Investment Program agreements effective July 1, Ohio paused new data center tax exemption requests, Utah ordered higher review standards for water, air, wildlife, ratepayer and transparency impacts, and New York lawmakers approved a one-year environmental permit moratorium for data centers with peak demand of 20 MW or more. Rich Miller at Data Center Richness reported Texas Gov. Greg Abbott directed the PUC and ERCOT to protect ratepayers and called for 2027 legislation to repeal data center tax exemptions, require closed-loop cooling and mandate electricity and water reporting; Peter Dujardin at Pilotonline reported Virginia Sen. Louise Lucas was set to begin a statewide tour against roughly $2 billion a year in data center tax exemptions ahead of a June 30 budget deadline.
Why it matters
Developers now face rising policy risk around tax treatment, grid-cost allocation, water use and public disclosure in several major and emerging data center markets.
Sources & driving stories
NATIONAL LAW REVIEW
National Law Review coverageDATA CENTER RICHNESS · Rich Miller
Data Center Richness coveragePILOTONLINE · Peter Dujardin
Pilotonline coverageWest Virginia receives first microgrid application
Chris Morris, director of the West Virginia Data Economy Office, said Thursday that the state received its first application this week to certify a microgrid tied to data center development. He declined to identify the developer, but said the two already certified projects in Putnam and Berkeley counties do not currently include microgrids. Morris also said the state has not received an application from Fundamental Data for its proposed natural gas-powered complex between Thomas and Davis in Tucker County.
Why it matters
The filing is the first practical test of West Virginia’s new certified microgrid framework for data centers, amid local concerns over emissions, noise, transparency and fossil-fuel reliance.
Sources & driving stories
CHARLESTON GAZETTE-MAIL · Caity Coyne
Charleston Gazette-Mail coverageSalem Township land deal moves toward zoning
4-3 Glen Brook Group announced it will seek zoning approval to amend Salem Township, Pennsylvania’s Data Center Overlay Zoning District for a proposed project covering more than 4,000 acres. Jack Sordoni said a public hearing is expected in July or August, while the buyer remains undisclosed under a nondisclosure agreement until zoning approval and closing. The group says at least 80% of the land would remain green space and cites existing high-voltage transmission, pipeline rights-of-way, the Moxie Freedom combined-cycle plant, a planned generation facility, closed-loop cooling and required EPA and DEP permitting.
Why it matters
The proposal shows large power-adjacent land assemblies continuing to advance even as buyer identity, environmental review and local approvals remain unresolved.
Sources & driving stories
TIMES LEADER
Times Leader coverageWorth noting
WORTH NOTING
Local moratoriums and rulemaking spread
Fayetteville is scheduled to vote Tuesday on conditional-use and energy/water disclosure rules, Lee County supervisors are seeking legal advice on a possible moratorium, and Allendale Township adopted a yearlong moratorium covering data centers and other large facilities.
WORTH NOTING
AI infrastructure capital keeps scaling
Rich Miller reported KKR officially launched Helix Digital Infrastructure with more than $10 billion in committed long-duration capital from KKR, the Kuwait Investment Authority, NVIDIA and Vistra, while also flagging reports of OpenAI advanced talks to lease a 10 GW Ohio campus.
WORTH NOTING
Emporia hearing follows annexation secrecy
Max McCoy reported Emporia, Kansas annexed five parcels for the proposed 1,000-acre Flint Hills Digital Campus and scheduled a June 23 zoning hearing, with resident anger focused on confidentiality around the developer’s identity.
Still unclear
OPEN QUESTION
Will data center incentives remain financeable assumptions?
Illinois, Ohio, Texas, Virginia, Utah and New York actions suggest tax exemptions and favorable utility treatment may become less predictable during multi-year campus buildouts.
OPEN QUESTION
Can microgrid projects win trust without disclosure?
West Virginia’s first microgrid application is confidential while communities are asking for specifics on emissions, noise, water use, fuel supply and ratepayer exposure.